Vendors somewhat stubborn as time on market increases in most capitals: RP Data

Vendors somewhat stubborn as time on market increases in most capitals: RP Data
Cassidy KnowltonDecember 8, 2020

Vendor discounting levels for houses in some cities have increased over the year but there have been slight reprieves for sellers in recent months, according to a new report by RP Data.

Across Australia vendor discounting is now at -7.2% for houses and -6.1% for units.

The resource boom cities of Darwin and Perth were the only capitals where the average discount necessary to secure a sale for houses was lower in March 2012 than in March 2011.

Average discount levels for units went up in four capital cities (Melbourne, Adelaide, Hobart and Canberra) over the year, remained unchanged in Sydney and went down in the rest.

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Houses are taking longer to sell in most capitals than they were last year. The average time on market has decreased in Brisbane, Perth and Darwin compared with the same time last year but has increased in all other capitals.

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“The improvement in vendor metrics in Brisbane, Darwin and Perth and the weakening conditions in Melbourne is a reflection of the overall market conditions highlighted by the amount of stock currently available for sale across these cities,” says RP Data senior analyst Cameron Kusher.

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Kusher notes that the increased time properties are lingering on the market is an indication of increased volumes.

“The elevation in the volume of stock available for sale certainly reflects a lower level of demand for housing credit,” Kusher says.

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Recent figures from Australian Property Monitors, which include both units and houses, show that the average discount required to secure a sale has increased in Sydney, Melbourne, Adelaide, Canberra and Darwin.

APM’s data also shows that the level of discounting peaked in mid- to late 2011, and that the lowest level of discounting required to secure a sale for the past year was in early 2012, for the most part. APM notes that the average discount has increased in recent months in most capitals.

APM data also notes that the number of days property is lingering on the market has increased in most capitals compared with this time last year.

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