GOLD Coast property vendors are slashing their asking prices in an attempt to secure sales in a post-pandemic housing market.
The move follows a string of interest rate hikes and a market slowdown, which new data indicates is leading to a rise in “distressed sales”.
Data from SQM Research shows that nationally in June there were 6,014 residential properties selling under distressed conditions, up from 5,753 the previous month, but down from 7,656 for the year to June.
The Gold Coast recorded the highest level of vendor discounting in QLD with 315 residential properties on the market selling under distressed conditions in June.
10/40 Marine Parade, Miami is on the market at offers over $1.5 million.
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SQM Research managing director Louis Christopher said southeast Queensland had always had more distressed sales compared to other regions around the country.
“Going forward, with continuing rises in interest rates and the end of the Covid relief period within the banking sector, I expect to see distressed listings activity return to levels recorded prior to Covid,” Mr Christopher said.
“So, while it’s likely we will keep reporting rises over the next few months, it is not something I would be overly concerned about unless numbers rise well above 15,000 properties.”
SQM Research managing director Louis Christopher says he expects to see distressed listings activity increase and return to levels recorded prior to Covid.
REIQ Gold Coast chairman Andrew Henderson said while the Gold Coast property market was good, there was no longer the frenzy seen at the height of the Covid property boom.
“We’ve gone through a phase where every sale was setting a record and now, potentially it’s got to a stage where it is levelling out,” Mr Henderson said.
“We’ve also come from extremely high numbers of registered bidders and buyers at inspections, which was giving sellers the feedback to consider where the market was at.”
REIQ Gold Coast chairman Andrew Henderson says while the Gold Coast property market is good, it’s no longer a frenzy.
He said just because a property was discounted didn’t mean it was a distressed sale.
“Feedback from the market is critical,” Mr Henderson said.
“Sellers have now got less information to make an informed decision on their property.
“Buyers want to know that sellers are not trying to get yesterday’s prices, they need to be trying to get today’s price.”
8342 Magnolia Drive East, Hope Island has had a “huge price reduction”.
At Hope Island, 8342 Magnolia Drive East is being marketed with a “huge price reduction” through Brian Phillis of Phillis Real Estate.
“It was on the market at $895,000 but now it’s at $820,000,” Mr Phillis said.
“The massive price reduction is really to get potential buyers moving.
“People are aware of discounts and we’ve had nearly four times more inquiry than we previously had on it.”
Further south, a three-bedroom unit in Miami had its asking price slashed by $100,000 last month.
10/40 Marine Parade, Miami was on the market at offers over $1.6 million but has been reduced to offers over $1.5 million.
Agent Luke Henderson, of Professionals – John Henderson Real Estate, is marketing the property at 10/40 Marine Parade.
“It’s a deceased estate so we’re trying to find where the market lies for it,” Mr Henderson said.
“We auctioned it and it failed to get a bid, so we put it at offers of more than $1.6m and now it’s at offers over $1.5m.
“Two-bedroom units had previously sold along Marine Pde for $1.6m so we thought we were offering a pretty good property at a good price.”
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