Sellers in upmarket suburbs are offering discounts on asking prices

Vendors in upmarket suburbs are leading a cluster of unprecedented discounting in a slowing property market.

Domain data shows 10.4 per cent of houses in Mosman, on Sydney’s harbour, sold for below sellers’ initial hopes – the highest percentage of price cutting of any postcode in Australia.

Rising inflation around the world is affecting global share markets, which in turn can impact the priciest segment of the property market, as wealthy buyers with diverse assets, which includes stock portfolios, protect their hip pockets by hold off upgrading to larger properties in luxury postcodes.

31 Bond Street, Mosman

SOLD - $4,075,000

31 Bond Street, Mosman NSW 2088

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Speaking on Today on Tuesday, Domain managing editor Alice Stolz said the most expensive end of the market is the first to drop when the overall market declines.

She said the volume of price reductions is the greatest seen since 2019.

In Adelaide, the leafy eastern belt of Norwood, Payneham and St Peters also registered more than 10 per cent of properties selling for less than asking price.

74 Spencer Road, Mosman

SOLD - $3,400,000

74 Spencer Road, Mosman NSW 2088

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14 Muller Street, Norwood

SOLD - $1,190,000

14 Muller Street, Norwood SA 5067

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Desirable postcodes in Brisbane’s inner west, including the city’s most expensive suburb of Teneriffe, plus Kangaroo Point and New Farm, were not far behind at 9.9 per cent of houses discounted.

Stonnington is a council zone containing some of Melbourne’s priciest houses, in suburbs including Toorak (where the third most expensive house in Australia is, trading for $88 million this year), South Yarra, Armadale, Glen Iris, Kooyong and Malvern.

The historic town of Sorell in Tasmania is one of its region’s oldest towns and Dodges Ferry is semi-rural and close to Sorell.

94 Osmond Terrace, Norwood

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94 Osmond Terrace, Norwood SA 5067

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51 Main Road, Sorell

SOLD - $530,000

51 Main Road, Sorell TAS 7172

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In Perth, Cottesloe is a salubrious waterfront suburb – along with Claremont – where, during lockdown, buyers chasing lifestyle pushed up prices up by 24.7 (over 12 months to March). However, not all vendors in waterfront Perth cannot expect to ride that wave anymore.

Ms Stolz said as long as interest rates continue to climb, she expects property prices will slip backwards.

“But what we are also understanding is that sellers are getting the memo, that buyers are not willing to pay what they paid a year ago,” she said.

3 Lyons Street, Cottesloe

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3 Lyons Street, Cottesloe WA 6011

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256 Marmion Street, Cottesloe

Classic Cottesloe Family Delight

256 Marmion Street, Cottesloe WA 6011

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