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Jennifer Duke
Vendors in some parts of Melbourne have been heavily discounting their asking prices, according to the latest RP Data statistics.
The largest vendor discounts were recorded for units in Broadmeadows and Vermont, with reductions of 25 per cent and 19 per cent, respectively.
Six months previously, the highest vendor discounts were recorded in Dandenong, with an average of 10.1 per cent.
Historically, the level for Melbourne has sat at around six per cent.
The discounting, however, is not indicative of falling property prices, with Vermont actually reporting an increase over the past 12 months.
Homes are taking 17 days longer to sell, shifting from 36 days in 2010 to 53 currently, the RP Data figures indicate.
RP Data said heavy vendor discounts were also seen in Park Orchards (17.7 per cent), Sea Lake (20 per cent), Charlton (17.2 per cent) and Fingal (16.7 per cent).
Heavy vendor discounts were also seen in Park Orchards (17.7 per cent), Sea Lake (20 per cent), Charlton (17.2 per cent) and Fingal (16.7 per cent).
RP Data's findings come as Melbourne's auction clearance rate struggles to surpass 55 per cent in recent weeks.
Real Estate Institute of Victoria (REIV) chief executive Enzo Raimondo remained optimistic, however, predicting strong results through to the end of November.
“With a high number of auctions over the next two weekends vendors will be hoping the small improvement recorded [last weekend] is the start of a cycle of strengthening demand,” Mr Raimondo said.
“There have been a total of 713 auctions [last] weekend of which 383 sold and 330 were passed in, 214 of those on a vendor's bid.”
“Next weekend the REIV expects around 815 auctions, and 1045 on the last weekend in the month.”
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