Market conditions are turning in favour of buyers and investors, who now have a slight edge over sellers particularly in some investment-grade suburbs.
A new report from Well Money listed the top 20 suburbs where buyers can negotiate at least 10% off the median price of properties.
Well Money CEO Scott Spencer said buyers have plenty of bargaining power in these investment-grade locations.
“Buyers hold a negotiating advantage in each of these suburbs right now because vendors have enjoyed capital growth of at least 45% over the past decade —even if they were to reduce their asking price by 10%, they’d still finish well ahead,” he said.
Investment-grade suburbs where buyers have negotiating edge |
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|
Suburb |
Median Asking Price – December 2022 ($) |
10-year price gain ($) |
Years of profit lost with 10% discount |
Vacancy Rate (%) |
|
Alstonville, NSW |
901,600 |
491,000 |
1.1 |
0 |
|
Marong, Vic |
574,240 |
348,000 |
1.3 |
0 |
|
Valla Beach, NSW |
560,000 |
285,000 |
1.3 |
0 |
|
Caloundra West, Qld |
749,000 |
435,000 |
1.4 |
0.5 |
|
Burleigh Waters, Qld |
1.5m |
555,000 |
1.4 |
0.4 |
|
Highett, Vic |
630,000 |
556,050 |
1.4 |
1.5 |
|
Kellyville Ridge, NSW |
508,250 |
400,000 |
1.4 |
0.7 |
|
Kariong, NSW |
952,750 |
415,000 |
1.4 |
0.3 |
|
Figtree, NSW |
1.07m |
500,000 |
1.4 |
1.0 |
|
Somerville, Vic |
800,000 |
510,000 |
1.5 |
0.9 |
|
Pomona, Qld |
950,000 |
448,250 |
1.5 |
1.4 |
|
Donvale, Vic |
825,000 |
501,000 |
1.5 |
0.9 |
|
Mountain Creek, Qld |
949,000 |
453,995 |
1.5 |
0.6 |
|
Bald Hills, Qld |
748,800 |
482,000 |
1.6 |
0.9 |
|
Vasse, WA |
487,990 |
385,000 |
1.6 |
0 |
|
Mermaid Waters, Qld |
1.7m |
555,000 |
1.6 |
0.9 |
|
Geilston Bay, Tas |
695,000 |
344,000 |
1.6 |
1.0 |
|
Eaglehawk Neck, Tas |
698,000 |
250,000 |
1.6 |
0 |
|
Glass House Mountains, Qld |
765,000 |
420,500 |
1.6 |
1.5 |
|
Yarrabilba, Qld |
540,800 |
450,500 |
1.7 |
1.0 |
Mr Spencer said demand relative to supply in these suburbs has been falling. On top of this, rental vacancies in these locations are tight.
“All of them have low inventory levels, which will put upward pressure on price growth, and low vacancy rates, which will put upward pressure on rental growth,” he said.
Several suburbs included in the list have vacancy rates as low as 0, which means rental properties are being filled in less than 21 days of being listed.
“The data suggests that investors would be more likely than not to enjoy positive returns,” Mr Spencer said.
—
Photo by Max Vakhtbovych from Pexels.
