by Scott Pape -
Here are the top ten most heavily discounted Australian properties on the market. (as at 14/10/11)
| Rank | Address | Suburb | Initial price | Now asking | Reduction |
| 1 | 588 White Beach Rd | White Beach, TAS | $780,000 | $400,000 | 49% |
| 2 | 102 Fountain Rd | Burpengary, QLD | $1,200,000 | $699,000 | 42% |
| 3 | 3 Boolari Rd | Gosford West, NSW | $990,000 | $580,000 | 41% |
| 4 | 25 Vicary St | Triabunna, TAS | $299,000 | $189,000 | 37% |
| 5 | 146 Maddington Rd | Maddington, WA | $5,500,000 | $3,500,000 | 36% |
| 6 | 290 Viveash Rd | Swan View, WA | $2,290,000 | $1,500,000 | 34% |
| 7 | 3 Zelma Ct | Macleay Island, QLD | $380,000 | $250,000 | 34% |
| 8 | 1/16 Dewar | Ledge Point, WA | $375,000 | $250,000 | 33% |
| 9 | 9 Brentwood Ave | Blackheath, NSW | $1,425,000 | $990,000 | 31% |
| 10 | 23 Hill St | Leichhardt, NSW | $1,185,000 | $850,000 | 28% |
Housing data courtesy of sqmresearch.com.au
Thumb: http://www.flickr.com/photos/claudio_ar/3243728543/
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33 comments
As before Scott, it seems that there is no slowdown in the Victorian market, with no VIC postcodes listed. Do you think that Victoria will buck the trend of these other states?
Hey Jenny,
I understand your frustration with the Vic data but it is coming.
I think the very fact that we have this list which shows the other side of the market very few want to admit exists.
Time will be the truth and the truth is Australian property is massively over valued.
Nobody wants to admit this as it will make them feel worse off… denial and government subsidy has been the route to keeping the wealth charade going.
It is also interesting how little in the election discourse that their has been little or no mention of housing.
Seems to me there may well be an agreement not to talk about what they know is coming it does not help either party.
I am positive the correction has started and just watch the turmoil with the USA market crash in the next two weeks, so pleased I switched my super to cash (as I did last time before the GFC!) and sold all my shares 2 weeks ago!
It is irritating that there are no VIC properties there. I know alot of people looking to buy property are waiting for this bubble to burst, but I am losing hope personally that it ever will
I agree with Ras, I am and have been looking for an investment in Victoria, attending inspections most weekends and checking property online every day. I still am yet to find something suitable, however with the current prices of property it becomes very disheartening quickly as finding something as a single person seems to be almost impossible.
I’m still not a believer that Australia will suffer the same detrimental drops to housing prices as the US and Japan have suffered in the past, a small decline is possible, but a collapse I just cant see happening.
Hey, Peter! I’d love to share your enthusiasm, but the reality is Australian property, as a percentage of average household income, is massively out of proportion, in comparison to the rest of the world. There will come a time when some correction will occur – personally I don’t think it will come completely into alignment, due to the lack of liveable land in Australia, as compared to other Western countries, but I do believe a correction is on the horizon (and I hope that the investment property I have on the market now is sold before that happens!!!).
If the housing market was like any other asset I think house prices would have nose dived long ago, but theres so much investment in houses (financial and emotional) that no government will let it happen. First home buyers grant, high immigration, not releasing land, construction related stimulus, personally I’d love it if the government got out of the way and stopped interfering , then maybe I could one day afford one but instead the coalition leveraged my future and gave it to the baby boomers.
Pft. government gave my house to the baby boomers. I live in 3/4 mil house and I am 27, it is my 2nd house. I missed the early 2000 booms too. I used to feel hard done by too, but you know what, sorry, but no one cares, get a plan and get on with it like everyone else who wants to go somewhere.
Investment in property is knowledge full
approach , I regularly save money with buying goods from value spotters to buy articles avail exciting offers cheers!
Hey Scott,
Could you add a state column for those of us who are geographically challenged? I have no idea if these suburbs are close to my home or even state for that matter
(except Adelaide – I know where that is)
Hey Cam,
We will add this on to the table on next weeks results.
Thanks!
Yes I would state or postcode too please.
No way could anyone ask for $340000 for that dump in elizabeth grove!
bad enough there are no tassie info either given i have a tassie property and don’t know what is going on there.
Interesting how none of these properties appear to be inner city? What does that tell you?
JK. Leichardt is inner City Sydney
You can just hear the bubble in the way people talk can’t you? I’m hearing people say things like “It’s OK a home loan is a good debt”, “If you lose your job you can just sell your property at a profit”, “House prices never come down”, “Buy NOW because house prices are only going up” and “We’re different to the US, it can’t happen here”.
I don’t think the fear of a bubble is a good enough reason not to buy or to sell up. But I do think it’s a good enough reason to make sure you can continue to make repayments even if you lose your job. Because house prices COULD drop. In that situation you don’t want to be forced to sell during unfavourable conditions. So just buy something you can afford!
The property at 12 Mahood St. Elizabeth Grove couldn’t possibly have been $340k. I’ve lived in the area for 45 yrs and for that price you’d get two of those joined together. They’re semi-detached properties and they’re selling only one of them. This price is normal for a semi- detached properties and there’d be no reduction in value as there’d be no way a single semi would sell for $340k.
Advertised data often gets mixed up with semi’s when both halves are being advertised together and later advertised separately, as two very different prices are recorded against the same address. $340k would have been for both sides.
I have to agree with the comment from Wendy Goss re No. 2 property in Elizabeth Grove. Anyone who knows the SA property market would realise that this property in this particular area would never have been valued at such a high figure in the initial cost. This area is not very desirable and the type of property is a cheapy anyhow. These places do not go much over $200K. It makes me wonder now about the others listed. SQM must have been dreaming.
Hi and Happy New Year for 2011.. just wondering about Tasmania in your cheapest property list (is not listed)… we have the same difficulties as everyone else sometimes more so by having the Bass Strait between us… cheer Janina
SQM didn’t list the property, the owners did. All SQM have done is track what they were listing for and yes, this property was once listed at $340,000. Yes it is probably ridiculous that is was asking for that price in the first place. But that’s the owners’ problem, not ours!!
Wow you found 10 properties that were probably over valued to begin with. Why dont you show 10 properties that smashed their reserve?
It does highlight a problem with this list though. Just because the price has dropped doesn’t mean the property is now a bargain. It could just mean that the original asking price was ridiculously high. A property that lists at a low price and doesn’t change can be a much better bargain than a property that lists high then drops to a more reasonable price. It’s like the car dealers that have price reduction stickers on every single car in the yard. Are you really getting a great deal or are they just trying to fool you into thinking that?
Fair chance these properties were way overpriced initially when an agent spruiked fanciful prices to owners in order to get the listing, all too common. If it sounds too good to be true…
Good morning, Scott.
Re the 2nd property on the list, 17 Wilma Crescent Russell Island: apparently sometime in the last week or so contracts were exchanged, although the price is not yet known. Briefly, it went to auction 29th May, passed in, and was re-listed for straight sale, undergoing several downward revisions of price. Last listed price was $399,000, so I guess that an offer somewhere below that was taken up. I have been following this property because it is next door to the residence of a relative and I was familiar with the property. The seller really took a bath on that one, losing at least $80,000 over 5 years. When I saw the initial price of $750,000 I thought “He’s dreamin’!” It was a shame, because it was not a bad property; just really bad timing after paying too much.
Hi Scott
My brother in law has been putting money into gold over the last 2 years and every couple of weeks he tells us how much his gold has gone up. Now I understand how important to diversify- I have noticed that gold has been doing well. Would you recommend that gold would be a good investment for me? Or what would you suggest I have some Myer shares(not doing so well). Otherwise can you suggest to me how I could start up one of those exchange traded funds I have have read you mention before.
Thanks
I love the use of the word ‘discounted’. Shouldn’t you just say ‘unrealistically initially overpriced’?
why…?
Hi Scott, i recently visited my personal banker and asked for a reduction of my interest rates. I have managed to drop the interest rates from 7.15, 7.00 & 7.50 to 6.97%. That will save me a bundle and pay off my loans quicker. Thanks for all your advice.I bought your book for my family to read at is really geared towards young adults for an easy ,enjoyable read. I am enjoying it also. Thanks for signing my book. Keep your advice up. I have learnt as i go, but having your advice keeps me staying focused even more.
It’s a pity that the list of discounted properties doesn’t provide more explanation as to why.
Maybe be they were way overpriced in the first place ? Maybe a significant event occurred locally i.e a large employer shut down.
As the saying goes ” You can make the statistics say anything you want “.
I have done a scan on real estate prices in Europe, the UK, Hawaii and Singapore. Our real estate is seriously cheap folks.
This land isn’t cheap, unless your a millionaire…e serious