Queensland vendors offer far deeper discounts than Victorians
The most discounted property in Queensland is the second-most discounted property in Australia, 1350 Wynnum Road, Tingalpa. It has nearly halved its price but has yet to find a buyer in the nearly year it has been on the market. It's been regularly featured on Property Observer as it struggles to find a buyer even at its reduced pricing.
Last week SQM Research released a list of the most discounted properties in Victoria, and the difference between the two states is striking. The 10th-place Queensland property, 13 Gawler Street, Rochedale South, is discounted by 25%, which is the same discount as the number one property on the Victoria list, 1/9 Albert Place, Hoppers Crossing.
Queensland vendors are offering steeper discounts, and RP Data analysis recently revealed that 6.3% of Queensland homes are now worth less than their purchase price. Queensland has been hit hard with the declining tourism market and natural disasters and is struggling to recover from the GFC.
"We believe that for the moment, houses in Brisbane are still considerably overvalued,” SQM director Louis Christopher says.
“House prices are running at a 27% premium to nominal GDP. On any measure, if this overvaluing continues, prices will correct further this year and possibly next year," Christopher says.
"Annually Brisbane house prices fell by 3.6% already over the period to June 2011, and over the 2011 calendar year SQM Research forecasts house prices for Brisbane to fall anywhere between -7.6% to -9.6%."
1
1350 Wynnum Road, Tingalpa, Queensland, 4173
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $380,000
Reduction: 46%
Days on market: 322
2
102 Fountain Road, Burpengary, Queensland, 4505
On the market since: April 17, 2011
Initial asking price: $1.2million
Current asking price: $699,000
Reduction: 42%
Days on market: 162
3
3307/128 Charlotte Street, Brisbane, Queensland, 4000
On the market since: December 12, 2010
Initial asking price: $575,000
Current asking price: $399,000
Reduction: 31%
Days on market: 287
4
190 Halls Road, Luscombe, Queensland, 4207
On the market since: October 31, 2010
Initial asking price: $840,000
Current asking price: $600,000
Reduction: 29%
Days on market: 329
5
37 Marlborough Road, Wellington Point, Queensland, 4160
On the market since: May 22, 2011
Initial asking price: $1.25 million
Current asking price: $899,000
Reduction: 28%
Days on market: 126
6
312/51 Hercules Street, Hamilton, Queensland, 4007 (pictured)
On the market since: March 14, 2010
Initial asking price: $1.6 million
Current asking price: $1.175 million
Reduction: 27%
Days on market: 560
7
13 Henry Street, Greenslopes, Queensland, 4120
On the market since: June 25, 2011
Initial asking price: $949,000
Current asking price: $699,000
Reduction: 26%
Days on market: 91
8
38 Simon Street, Yeronga, Queensland, 4104
On the market since: December 12, 2009
Initial asking price: $950,000
Current asking price: $700,000
Reduction: 26%
Days on market: 651
9
4 Lower Clifton Terrace, Red Hill, Queensland, 4059
On the market since: August 28, 2010
Initial asking price: $1.2 million
Current asking price: $895,000
Reduction: 25%
Days on market: 392
10
13 Gawler Street, Rochedale South, Queensland, 4123
On the market since: March 26, 2011
Initial asking price: $429,000
Current asking price: $350,000
Reduction: 25%
Days on market: 182
SQM Research also offers a list of the Top 100 Biggest Bargains in Australia for sale.