Sydney suburbs with the biggest property discounts

Analysis of recent property sales data shows homebuyers are negotiating an average of up to 12 per cent off list prices in some areas. See the suburbs with the biggest discounts

Cash has become king in Sydney’s falling property market and those who have it are carving out incredible discounts, especially on luxury homes.

Analysis of recent property sales data shows home seekers are negotiating an average of up to 12 per cent off list prices in some areas.

The same suburbs have properties up for sale with as much as $800,000 cut off the original list price.

It’s a sharp change from the pandemic-era property price boom over late 2020 and 2021, when most buyers were paying above price guides, especially at pressure cooker auctions.

Discounts have come as housing experts revealed many would be buyers have become so spooked by the threat of more rate rises that they’re holding off purchasing.

This has left those bold enough to buy, along with the borrowing power necessary to make it possible, in a commanding position in certain city pockets.

Real Estate Buyers Agents Association president Cate Bakos said buyer’s agents would be capitalising on the expected hush after this week’s interest rate rise to swoop in on deals for their clients.

Buyer's agent and president of the Real Estate Buyers Agents Association of Australia Cate Bakos.

Ms Bakos said many buyers were waiting in the wings and anticipated savvy investors would use the negative consumer sentiment to their advantage.

Ray White chief economist Nerida Conisbee said it was it was a strong “buyer’s market” for anyone who could get financing. “If you’re sitting on cash, you’re in an excellent position,” she said.

Ms Conisbee said many of the areas with the best discounts were on offer in markets where prices did not have a long track record of falling.

“They’re more up-market areas. They’re actually the areas that have had the highest long-term growth,” she said.

The biggest discounts were on offer in coastal suburbs, especially luxe northern beaches and Central Coast markets, where prices exploded during the pandemic boom.

Houses in Central Coast suburb North Avoca have been selling for an average of 11.5 per cent below the list price, according to Ray White analysis of median sales figures.

Ray White Chief Economist Nerida Conisbee. Picture: Tertius Pickard

In northern beaches suburbs Dee Why, North Narrabeen and Mona Vale, the typical vendor discounts on houses were about 10 per cent.

Houses in Londonderry in the city’s west were being discounted by an average of 12.4 per cent before selling.

Mona Vale also had the biggest apartment discounts – again at about 10 per cent below the original price.

Among the properties currently up for sale with a big discount is a three-bedroom house on Nareen Pde in North Narrabeen.

$200k price cut: 6 Nareen Pde, North Narrabeen – was listed for $1.75m, now $1.55m.

It was originally listed for $1.75m, but after languishing on the market unsold for eight months, the price has been cut to $1.55m, a drop of $200,000.

Further north, in Bayview, a four-bedroom house on a 3200 sqm block on Cabbage Tree St is for sale at $3.299m, about $400,000 below the original price.

$400k price cut: 76 Cabbage Tree Rd, Bayview – was listed at $4m, now $3.6m.

Another house on the same street is also for sale with a $400,000 discount – it was $4m, now it’s $3.6m.

In the Sutherland Shire, two duplexes on one title are on offer at $3.35m, the original price was $3.5m.

123 Kiora Rd, Miranda, was listed for $3.5m, now $3.35m.

Many of these homeowners first listed their homes after prices had already been falling for months.

PropTrack data showed Sydney home prices fell by an average of about 7 per cent over the past year.

Ms Bakos said good buying conditions may not last. “We continue to maintain that the second half of 2023 will see increased buyer energy as those buyers who are waiting for the market to bottom will see that the cash rate reaches equilibrium and some level of certainty returns in respect of the RBA.”