Perth vendors offering deeper discounts than Melbourne but market could be bottoming out: SQM
Western Australian properties are lingering on the market despite deep discounts designed to entice buyers, according to SQM Research.
SQM Research has released a list of the top 10 most discounted properties in WA, and the property at number 10 on the list, 115 Plover Drive, Yangebup, is now offered with a 27% price reduction on its original $450 price hopes.
In contrast, the most discounted property in Melbourne, 1365 Ballan Road, Wyndham Vale, only has a 25% discount on its original $2.4 million price hopes.
SQM Research director Louis Christopher points out that the most discounted property in Western Australia, 290 Viveash Road, in the Perth suburb of Swan View, has been on the market for almost four years and has been unable to entice a buyer despite a 41% discount on its original $2,290,000 price hopes.
"The number one property on this list, which has been referred to many times in the past by SQM Research, has spent years on the market – sitting on a current tally of 1,376 days," Christopher notes.
"A quick scan of the Perth top 10 will reveal that the majority of the other homes are way up there as well, and this is definitely a factor in play when it comes to substantial house price discounting. Properties that are going stale – in other words, have been on the market for extended periods of time are commonly discounted as the vendors become increasingly eager to sell.
"This is often when potential buyers do have the opportunity to bag a possible bargain – given that there are no issues pertaining to the quality of the property, as the vendors may be willing to sell properties at a lower price than their market value in a bid to make a speedy sale," Christopher says.
However, Christopher says the Perth market could be bottoming out and heading into a recovery.
"Listings have actually been falling in Perth, and second to this, loan approvals have also been rising in recent months," Christopher says. "So it is quite possible that even right now as the market is weak, it may well also be bottoming out. In future, we expect that when we revisist the most discounted properties in the city of Perth, a number of the current homes may well have exited the list."
1
290 Viveash Road, Swan View, WA, 6056
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.35 million
Reduction: 41%
Days on market: 1,376
2
15 Gretel, Two Rocks, WA, 6037
On the market since: December 26, 2009
Initial asking price: $1.1 million
Current asking price: $699,000
Reduction: 36%
Days on market: 756
3
309 Scarborough Beach Road, Woodlands, WA, 6018
On the market since: February 7, 2010
Initial asking price: $1.1 million
Current asking price: $750,000
Reduction: 32%
Days on market: 713
4
61 The Strand, Applecross, WA, 6153 (pictured)
On the market since: September 13, 2009
Initial asking price: $7.9 million
Current asking price: $5.45 million
Reduction: 31%
Days on market: 860
5
124/580 Hay Street, Perth, WA, 6000
On the market since: October 23, 2011
Initial asking price: $1,385,000
Current asking price: $975,000
Reduction: 30%
Days on market: 90
6
4/19 Broome Street, Cottesloe, WA, 6011
On the market since: January 10, 2010
Initial asking price: $1.2 million
Current asking price: $850,000
Reduction: 29%
Days on market: 740
7
1/43 Preston Point Road, East Fremantle, WA, 6158
On the market since: May 23, 2010
Initial asking price: $1.1 million
Current asking price: $800,000
Reduction: 27%
Days on market: 608
8
1806/96 Bow River Crescent, Burswood, WA, 6100
On the market since: June 18, 2011
Initial asking price: $969,000
Current asking price: $705,000
Reduction: 27%
Days on market: 217
9
227 Franklin Road, Wanneroo, WA, 6065
On the market since: December 27, 2010
Initial asking price: $1.5 million
Current asking price: $1,095,000
Reduction: 27%
Days on market: 392
10
115 Plover Drive, Yangebup, WA, 6164
On the market since: May 5, 2011
Initial asking price: $450,000
Current asking price: $380,000
Reduction: 27%
Days on market: 77
SQM Research also offers a list of the Top 100 Biggest Bargains in Australia for sale.