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.

Source: CoreLogic