Property Price Discounts - What purchase price should you offer?
Since most property sales are by private sale (as opposed to auction), understanding how much discount (to original list prices) is being accepted by vendors can help guide what purchase price you should offer.
Below are some important statistics.
How common is discounting?
Nationally, over the three months to April 2019, 75.6% of properties sold for less than their original list price.
It is a little bit of a different story across the capital cities.
Sydney - 78.1% of private sales (in 2013-15 properties were actually selling at a premium to their listed price).
Brisbane - 67.2% of private sales
Adelaide - 74.4% of private sales
Perth - 73.6% of private sales (in 2006-07 properties were actually selling at a premium to their listed price)
Hobart - 32.5% of private sales
Darwin 85.4% of private sales
Canberra 45.8% of private sales
How much discounting is taking place?
The median vendor discount nationally was recorded at -5.6% as at April 2019. There are slight differences between major cities and regional areas.
Sydney - 6.9% median discount
Melbourne - 6.2% median discount
Brisbane - 4.7% median discount
Adelaide - 5.2% median discount
Perth - 6.8% median discount
Hobart - 4.3% median discount
Darwin - 7.1% median discount
Canberra - 2.7% median discount
Regional NSW - 5.3% median discount
Regional Vic - 4.5% median discount
Regional Qld - 5.6% median discount
Regional SA - 6.1% median discount
Regional WA - 7.8% median discount
Regional Tas - 4.2% median discount
Regional NT - 5.8% median discount
Discounting differs greatly between suburbs and is a reflection of supply and demand for that area.
To get the best understanding of how much discounting is occurring in your suburb, please request a FREE property report.