HOMEBUYERS are nabbing property bargains across WA as sellers accept offers hundreds of thousands of dollars below their original asking price.
Some homes are even being bought at prices cheaper than eight years ago, with one agent saying vendors could no longer expect “Hollywood prices”.
In Perth, homes in West Swan, Dalkeith and North Fremantle were selling at an average 10 per cent below their asking price in the March quarter, new figures collected by CoreLogic RP Data reveal.
Regional towns were being hit even harder, with more than 20 per cent of properties selling below what they were last purchased for.
WA’s top five discounted properties now on the market had slashed their asking prices by more than $500,000, research by national analysts SQM Research showed.
Perth Property Partners managing director Darren Schneider said the mining downturn had created opportunities for buyers.
“Desperate sellers, particularly those in the mining industry, are prepared to take a hit if it means a quick sale. We’ve recently bought properties for clients where sellers have chosen cash offers over higher ones because they needed a quick settlement,” Mr Schneider said.
“Sometimes you just need to wave cash under a seller’s nose and you can save yourself $15,000.”
Inner-city real estate agent Brent Compton said as the market plateaued, sellers could no longer afford to set homes at “Hollywood prices”.
Mr Compton sold a two-bedroom unit on Adelaide Tce, East Perth last month for $665,000 – $73,000 less than its 2007 purchase price.
“Over-quoting won’t do sellers any favours and in a plateauing market vendors are costing themselves money the longer they keep a property on the market,” Mr Compton said.
Pilbara real estate agent Danielle Maiuru sold a one-bedroom unit to investors in Port Hedland for $243,000 this month, $456,000 less than its sale price three years ago.
Ms Maiuru said as “prices had come back to reality”, more investors were “sniffing for bargains”. “Not every home is selling at half its original price, but there’s definitely bargains to be found,” she said.
Morley buyers’ agent Zana van de Graaf said top-end homes with inflated prices had the biggest discounts, as some owners were in negative equity and desperate to sell.
“We recently purchased a property in East Perth for a client where the owners had $400,000 negative equity,” she said.
Applecross real estate agent Jeff Jafari agreed prestige homes were the hardest hit.
“Buyers are turning up to home opens knowing exactly what next door sold for and expecting a discount,” Mr Jafari said.
“Once one house in an area drops its asking price, it will have a knock-on effect. However, sellers should hold out to avoid selling at a loss.”
TOP 10 PERTH SUBURBS FOR HOMES SELLING BELOW ASKING PRICE
(Average discount March quarter 2015)
- West Swan -16%
- Dalkeith -12.2%
- North Fremantle -11.2%
- South Perth -10.7%
- West Perth -10.3%
- Gooseberry Hill -10.2%
- Peppermint Grove -10.1%
- Cottesloe -10%.
- Mariginiup -9.9%
- Applecross -9.6%