$650K off the price: biggest discounts offered in middle- and upper middle-income suburbs
Homes in Sydney’s far north and south are being offered at discounts of up to $650,000 off the original prices as sellers rush to offload their properties before winter sends the real estate market into hibernation.
Buyer’s advocates told the Sunday Telegraph home seekers would find some of the biggest bargains on Sydney’s upper north shore, Sutherland Shire and other regions known to appeal to middle- and upper middle-income buyers.
These areas had some of the biggest drops in buyer demand over the past year because fewer house hunters could get large enough loans from banks, which have become increasingly restrictive in their lending practices.
MORE: 20 suburbs affordable again
Drug den full of needles gets shock price
Sellers in this environment have had to make major cuts to their prices if they want to sell quickly.
And many sellers are now hoping to avoid stretching their sales campaigns into the colder months when their homes won’t present as well, the experts said.
Propertybuyer.com.au director Rich Harvey said the period between Easter and late June would be marked by a push from sellers to get their homes sold due to still falling housing demand and fears buyers will flee the market in winter.
“Sellers usually get more motivated around this time of the year because the colder winter months are not as appealing for a sale,” Mr Harvey said.
“This year there are also a lot less buyers around so there’s a very good opportunity to get a bargain, especially for upgraders … many of our buyers have been getting discounts of anywhere between $100,000 and $400,000.”
Realestate.com.au chief economist Nerida Conisbee said the upper north shore was proving a particularly fertile hunting ground for bargain hunters due to reduced demand from Asia-based investors.
Their exodus from the market reduced much of the competition for properties from Chatswood to Wahroonga, she said.
Other regions once popular with upper middle-income buyers such as parts of the Sutherland Shire and St George region were seeing a decline in the number of people who could afford the prices.
“Banks won’t issue (mortgages) with as high loan to value ratios any more so it’s made it harder for a lot of people to buy those homes priced at about $2 million, $3 million.
“This isn’t as much of an issue in areas like the premium eastern suburbs because fewer buyers rely on loans there and they often have high incomes.”
A home on Connells Point Rd in St George enclave Connells Point offers one of Sydney’s most discounted prices. It was listed at $3.05 million to $3.35 million in February but by March was cut to $2.4 million.
A nearby home on Phillip St in Blakehurst is up for grabs with $289,000 cut off the price. It was listed for $1.638 million. Now it is $1.349 million.
A Maroopna Rd property in Yowie Bay in the Sutherland Shire was listed in November for $2.4 million but the price has since been cut to $2.1 million, a reduction of $300,000.
Sellers on Crescent Rd in Mona Vale slashed $500,000 off their price, reducing it from $4 million to $3.5 million.
And in the inner west, 144 Bland St in Haberfield is now available for $2.295 million after being listed previously for $2.85 million.