Palm Beach property on SQM most discounted list as coastal second-home suburbs suffer
A non-waterfront Palm Beach property – but with great Pittwater views – that has been on the market for almost a year has now been discounted to below its last sale price.
The property at 882 Barrenjoey Road, Palm Beach, last sold for $890,000 in 2004 and is now advertised for $750,000 plus.
"Not only has it been significantly discounted (by 35%) but it is also being advertised at a price $140,000 less than the price it was originally bought for back in 2004," SQM Research director Louis Christopher points out. "So potentially, the vendors of this property posted a loss of at least that amount, as well as any interest accrued on a mortgage and agency/marketing costs."
Christopher says the prestige market in Sydney and elsewhere has been suffering price falls.
"Often it is the localities where house prices are elevated or the the homes that sit on the higher end of the market that suffer the most in a downturn," he says.
Christopher warns property investors that there is no guarantee of significant returns, no matter what location they choose.
"Circumstances such as these truly do show that there is no absolute 'safety in bricks and mortar' – there are always exceptions to the rule.
"Investors do need to be aware that not every investment made in a 'hotspot' or an area undergoing substantial price growth is going to reap fantastic dividends," he says.
1
6 South Scenic Road, Forresters Beach, NSW, 2260
Days on the market: 694
Initial asking price: $2 million
Current asking price: $1.1 million
Reduction: 45%
2
19 Lychee Drive, Caboolture, Queensland, 4510
Days on the market: 819
Initial asking price: $949,000
Current asking price: $586,000
Reduction: 38%
3
502 Tarni Court Port Adelaide 5015
Days on the market: 784
Initial asking price: $725,000
Current asking price $450000
Reduction: 38%
4
202 Wolstenholme Avenue, Greendale, NSW, 2745
Days on the market: 938
Initial asking price: $2.95 million
Current asking price: $1.85 million
Reduction: 37%
5
3 Wharf Road, Green Point, NSW, 2251
Days on the market: 533
Initial asking price: $950,000
Current asking price: $599,000
Reduction: 37%
6
Days on the market: 967
Initial asking price: $1.1 million
Current asking price: $690,000
Reduction: 36%
7
588 White Beach Road, White Beach, Tasmania, 7184
Days on the market: 819
Initial asking price: $780,000
Current asking price: $499,000
Reduction: 36%
8
1302 Birkdale Place, Magenta, NSW, 2261
Days on the market: 1,524
Initial asking price: $700,000
Current asking price: $450,000
Reduction: 36%
9
99 Lowanna Way, Armadale, WA, 6112
Days on market: 1,236
Initial asking price: $1.85 million
Current asking price: $1.2 million
Reduction: 35%
10
31 North Scenic Road, Forresters Beach, NSW, 2260
Days on the market: 393
Initial asking price: $2.3 million
Current asking price: $1.5 million
Reduction: 35%
11
882 Barrenjoey Road, Palm Beach, NSW 2108
Days on the market: 323
Initial asking price: $1.15 million
Current asking price: $750,000+
Reduction: 35%
SQM Research also offers a list of the Top 100 Biggest Bargains in Australia for sale.