- A new Aussie/RP Data report shows more than two in five houses and units sell over the advertised price in capital cities
- Capital city properties are selling quickly, with an average 39 days on market in June 2014 down from 47 days in June 2013
- Only 3.8 per cent of houses and 4.7 per cent of units sold at the advertised price last financial year
The Spring property season is expected to show continued growth off the back of a strong year of premiums over advertised prices for many properties across Australia, according to an exclusive RP Data report for leading mortgage broker, Aussie.
The Aussie/RP Data report found that in the 12 months to June 30, 2014, in capital cities 43.6 per cent of houses and 46 per cent of apartments sold for more than their initial list prices.
For city and country areas the national average of properties selling above list price was a lower 32.8 per cent for houses and 37.2 per cent for units.
The hottest city was Sydney, where 59.4 per cent of houses and 63.6 per cent of apartments sold above their list price, followed by Melbourne at 50.4 per cent and 45.4 per cent. The two cities are head and shoulders above the rest of Australia’s capitals with both also showing strong population growth, leading to greater demand for dwellings.
Executive Chairman of Aussie, Mr John Symond AM, says “The report shows strong momentum in capital city markets which bodes well for home sellers in Spring – traditionally the most active property season of the year. Although value growth has been relatively weak to date in Brisbane, Adelaide and Hobart, these three cities have recorded the largest year-on-year jump in sales, which could be a pre-cursor to a greater pick-up in value growth as demand for housing rises.
“The new report also shows that city markets are much stronger than regional areas. For those looking for capital growth, the theme clearly indicates that capital cities are the places to invest, while regional areas are more about lifestyle than returns”, Mr Symond added.
Top 10 Suburbs Selling Above List Price - Houses
Top 10 Suburbs Selling Above List Price - Units
Despite many properties selling above the advertised price, in city and country areas the majority are selling for less with 63.4 per cent of houses and 58.1 per cent of units selling below the initial list price.
The report also showed only 3.8 per cent of houses and 4.7 per cent of apartments sold at the list price.
Mr Symond continued “It’s very surprising to note how few homes sell at list price, but it’s positive that there’s still an opportunity for savvy home buyers to negotiate down in some areas. Sellers and buyers should take list prices with a grain of salt as the results are working out to be quite different from original expectations.”
Homes are selling faster
Properties selling above list price are being snapped up quickly. Looking at the Top Ten Suburbs, the average time on market for homes selling below was 147 days (houses) and 132 days (units), compared with just 38 and 27 days respectively for homes selling above list price.
“Properties in high demand suburbs are selling high and selling fast, and the heavy competition is expected to continue into Spring. Buyers should be prepared to think quickly and act smart, and go into their property search with their mortgage pre-approval sorted. Knowledge of the market and a strong will not to stretch themselves beyond their means is also critical, especially if interest rates rise as they’re tipped to do in 2015,” Mr Symond concluded.
Aussie’s mobile mortgage brokers and 160 stores offer free loan advice and pre-approvals for home loans sourced from its panel of up to 19 lenders, including the big banks. To book a free appointment, call 13 13 33 or visit www.aussie.com.au.