New research from Domain Group has revealed five Sydney suburbs where significant rates of vendor discounting are still needed to finalise sales.
The figures, based on private treaty sales in the 12 months to the end of May, show sales in Vaucluse, Mona Vale, Ultimo, Mosman and Avalon were discounted by at least 6%.
Vaucluse had the highest average discount at 8.7%, followed by Mona vale at 6.7%.
Ultimo, Mosman and Avalon were tied at 6.6%.
Domain Group senior economist Dr Andrew Wilson told the Sydney Morning Herald the high number of apartments for sale in Ultimo were likely responsible for its discount rate.
The other four suburbs were being hampered by their prestige according to Dr Wilson.
“In the range over $5 million, particularly in the $10 to $20 million range, prices are not being realised to the same level as they were pre-global financial crisis,” he said.
“There is no doubt the real strength has been in the meaty middle and lower ends of the housing market.”
While Vaucluse currently has Sydney’s highest average discount rate, there is some good news for vendors in the suburb as it has dropped 0.1% in the past 12 months.
Conditions seem to be improving in Mosman as well, as its average discount rate fell from 7.8% to 6.6%, while Avalon also fell to the same mark from 7.2%
Mona Vale’s average jumped from 5.9% to 6.9% and Ultimo had the biggest increase, up to 6.6% from 5.3%.
