RESIDENTIAL PROPERTY
PROPERTY pricing may have missed the market across February, as many sales fell below expectations over the month.
According to new research by online property sales platform Openn, only 33% of residential properties sampled sold for a price within 10% of a model price estimate.
Openn in most cases expects up to 45% of sales to fall within 10% of expected prices under normal market conditions.
A smaller percentage, as seen over last month, could indicate a disconnect between buyer demand and seller expectations.
“Unfortunately, many of the free estimate tools used by agents and sellers to help set prices aren’t keeping pace with...
Peter Gibbons, managing director at Openn.
“In these circumstances, digital sales processes that allow buyers to compete transparently until true market value is achieved can be really powerful.”
Tasmania saw the highest proportion of sales below expectations, at 70%, while South Australia saw the highest proportion of sales above expectations at 17%.
In NSW, 33% of properties sold within 10% of price expectations, with 57% selling below expectations and 10% selling above.
In Victoria, properties selling within 10% of expectations was slightly above the national average at 36%. With 54% selling below expectations and 10% selling above.
Queensland saw 29% of properties sell within 10% of expectations, with 60% selling below expectations and 11% selling above.
South Australia had 35% of properties selling within 10% of expectations, with 47% selling below expectations and 17% selling above.
In Western Australia, 51% of properties sold within 10% of expectations, with 36% selling below expectations and 14% selling above.
Finally, in Tasmania, where the greatest proportion of properties sold below expectations, just 1% sold above expectations and 29% sold within 10% of price expectations.