Sydney Property Price Cuts Hit 18-Month High

Sydney is still a market falling when it comes to housing. At an average discount on their original asking price, of 6.8 percent, house owners looking to sell in Sydney sold in August. In the biggest city in the country the selling times elongated. Up from 6.7 percent discount in July and a year earlier, more than one-third higher than the 5 percent discount in August, came as, for separate houses the slowdown kept days on market the same as apartments, this is shown in the latest State of the Market report of Domain Group.

Fairfax media, the publisher of ‘The Australian Financial Review’ owns the majority of Domain. Sydney house market is hit by the credit-led slowdown that is reducing the amounts homebuyers can borrow and slowing deals. Over the year to September Sydney, housing values fell 6.1 percent. Real estate agent Lynsey Kemp of Belle Property Balmain said, “Definitely financing is tighter and is taking longer to go through as well”, “what people were getting 12 months ago they are not getting the same amounts approved”.

After 40 days in the market, in the inner-western suburb of Leichhardt, Ms. Kemp last week sold a three-bedroom semi-detached house for $2,070,000, the price for which was originally advertised with a $2.3 million price guide in New South Wales. Originally scheduled for auction was the home at 41 Burfitt street but that was postponed. And as per the records the price guide was cut several times, from $2.3 million at the time of the first listing, to $2.2 million in August and then in September $2 million i.e. it had to be adjusted for a couple of times.  [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]

Domain figures show that from 6.2 percent in July to 6.4 percent in August discounting on units in Sydney also increased and from the 4.8 percent average discount of August last year almost one third up. Melbourne is also seeing the signs of a rise in house discounting, where the market slowdown was to start off later than Sydney. However, the declines now show signs of overtaking those of Sydney.

From 5.6 percent in July in the Victorian capital, the average house discount widened to 5.7 percent while a year ago it was 5.2 percent. With the average 6.1 percent discount in August unchanged from July, and below the 6.3 percent of August a year earlier, discounting on Melbourne units has eased. From 82 days in September last year to 79 in September, the average number of days on market for Melbourne units has also shortened. Discounting figures for August, market figures for September, the domain report lists days. And it appears that Melbourne is overtaking Sydney as weakest housing society. Faster than the 4.1 percent drop recorded in Sydney, this year Melbourne's median price has now fallen 4.4 percent.

Prices fell by 0.1 percent from late September, in averagely weighted terms reflecting declines of 0.1 percent apiece in Sydney, Brisbane and Adelaide, 0.2 percent in Melbourne and 0.3 percent in Perth. Prices in these cities fell 0.6 percent over the past four weeks, combined with prior weakness a result driven by declines of 0.5 percent, 0.8 percent and 0.96 percent in Sydney, Perth, and Melbourne respectively. Prices in Brisbane increased marginally by 0.1 percent. The effect is small but is widespread. Despite gains of 0.4 percent apiece in Brisbane and Adelaide, combined with a 3.2 percent fall in Perth values it left the median price in the state capitals down 3.5 percent this year.

With discounts little changed at 5.7 percent in August from a year earlier, the report also shows Brisbane's house market strengthening. With the average discount widening to 7 percent from 6.6 percent in July, units in the Queensland capital remain under pressure.

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