Get it for less: The Brisbane areas where sellers are dropping their prices

It’s music to the ears of every Brisbane house-hunter who has spent the past two years watching prices go only one way – and that’s up – as new data reveals the pockets of the city where sellers are dropping their prices.

The average reduction in the asking price of Brisbane houses is on the rise overall, according to Domain data, spiking to its highest rate since July 2020.

It could be an early indicator that the river city’s red-hot market is beginning to slow in response to interest rate rises, a federal election and more properties to choose from, said Domain chief of research and economics Nicola Powell.

“Discounting is such a great indicator of that subtle change in sentiment,” she said.

“There’s always a level of discounting in the market, no matter the conditions – but it’s the direction of where the discounting is going that gives us an idea of the health of the market. If discounting is rising, we’re selling homes for lower than the asking price.

“In a market like Brisbane, there has been strong demand for a while now. It’s well known there’s a lot of interest in Brisbane from interstate. Prices are still rising – but not at that same pace that they were earlier this year.”

Where houses are selling for less than their asking price

SA3 name May-22 May-21 Annual change
Sherwood – Indooroopilly 9.6% 5.3% 80.3%
Brisbane Inner – North 8.9% 7.0% 26.3%
Nundah 8.7% 4.5% 91.8%
Nathan 8.2% 9.3% -11.4%
Carindale 7.8% 4.1% 90.7%
Kenmore – Brookfield – Moggill 7.6% 6.7% 13.5%
The Gap – Enoggera 7.5% 5.3% 41.1%
Springwood – Kingston 7.5% 6.9% 7.9%
Holland Park – Yeronga 7.4% 6.1% 20.2%
Mt Gravatt 7.4% 7.1% 4.2%

The region of Sherwood-Indooroopilly, which also includes suburbs such as Graceville, Chelmer, Corinda and Taringa, saw the most discounting on house sale prices in May. On average, houses sold for 9.6 per cent lower than their asking price.

Compared to the same time last year, the rate of discounting in that region is up a massive 80.3 per cent, no doubt due to the floods in Brisbane during February, Dr Powell said.

“Discounting may be on the rise in Brisbane but in those parts of Brisbane that were affected by floods earlier this year, that’s telling us a different story. This isn’t telling us the market is slowing down; it’s telling us that the home or the state of the home has changed,” she said.

Brisbane Inner-North, which captures suburbs such as Newmarket, Ascot, Hamilton, Wooloowin, Windsor and Grange, saw houses selling for 8.9 per cent lower than their asking price, up 26.3 per cent compared to the same time last year.

But the most significant spike in discounting over the past year was recorded in the Nundah and Carindale regions, which includes suburbs such as Northgate, Banyo, Carina and parts of Camp Hill and Cannon Hill. Discounting has risen by more than 90 per cent in both regions since May last year.

“The dynamics of the market are shifting and they’re shifting quickly,” said James Kirkland of Upside Realty. “It’s no longer feasible to look back on a similar property that sold three months ago and use that as a benchmark for what something will sell for now.

“The market has changed.”

Steve Grimbas of Place Estate Agents Nundah said some vendor expectations were having to be lowered as the market shifted.

“It’s definitely slowed a little bit; there’s not that frenzy anymore,” he said. “And we were never going to keep that up.

“There’s less competition in our area now. That’s having an impact.”

Small price drops on houses in some areas were more an indicator of the market normalising, said Julian Maddox of Place Graceville.

“I’d say things are selling where they should be,” he said. “There have been some [properties] that have been discounted, but that discount is reflecting that we’ve gone through such a good market, sellers’ expectations have surpassed that where the buyers are.

“Buyers are still willing to pay as much as what they were a couple of months ago but there’s not as much competition now. So sellers are having to come to that realisation that their house might be worth what it was four months ago – but no more than that.”

Maddox said the data was a reflection of buyers and sellers aligning their expectations.

“The number of inspections coming through open homes has really dropped off,” he said. “Even one interest rate rise has an impact. The urgency that was in the market a few months ago is what has come off and I think that’s what we’re seeing here.”

Buyers are more worried about paying too much for a property rather than missing out, which was the key difference between now and six months ago, according to Joseph Lordi of Chapter Estate Group.

“More homes have come on the market and there are more options, so buyers aren’t worried if they miss out – they know there’s choice,” he said.

Lordi said Brisbane’s housing market had shifted to a case-by-case basis, rather than a uniform “you’ll get multiple offers and a huge price” scenario.

“That’s a telling sign that the market is changing,” he said. “Some buyers are still showing the same urgency we saw six months ago and paying those big prices. We just sold a place at Carindale where the vendors wanted $1.2 million and got $1.45 million. But then there are new buyers who’ve entered the market this year and they aren’t as motivated or desperate … and their offers are in line with that.

“Those big numbers over the asking price … when that’s happening less consistently, it shows the market is changing.”

Tony McLoughlin of Place Ascot said it was Brisbane’s outer fringe suburbs that traditionally suffered first if a market slowed, but not this time.

“That’s not the case this year simply because the demand for more affordable property is still high and there’s not enough stock,” he said. “I wouldn’t pinpoint any particular area in Brisbane that’s going to see prices come off but I would say there are certain types of properties that could cool off first.”

Properties on main roads and development sites or splitter blocks would feel the market changes over other property types, he said.

“Construction costs have gone through the roof and getting materials is so hard. So I’d say splitter blocks, bigger blocks, development sites [are] not selling as quickly.”


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