Melbourne suburbs where homeowner discounts, days on market give buyers chance to nab a deal

Box Hill South tops the list of Melbourne suburbs with the highest rates of vendor discounting, the typical seller accepting a price 4 per cent below their initial asking price, figures from PropTrack show.

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Bargain-hunting buyers can also look at suburbs where homes linger longer on the market.

The average of 79 days it takes a home to sell in Brooklyn, in Melbourne’s west, is the longest in the metropolitan area.

PropTrack’s economic research executive manager, Cameron Kusher, said both approaches could give buyers better odds, but the real deals were more likely to be had later in the year after more interest rate rises.

13 Dee Rd, Millgrove is for sale with a $650,000-$720,000 asking price. Millgrove is among Melbourne’s fastest selling areas.

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With five bedrooms, 77 The Crescent, Sassafras will be auctioned June 18 with $790,000-$860,000 price hopes. Sassafras houses sell within a median 10 day period.

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Mr Kusher said the median vendor discount, reflecting the difference between an initial listing price and what a property sells for (not including auctions), was historically closer to 5-6 per cent in many suburbs – meaning most Melbourne sellers have been selling for or above their asking price.

“These levels of discounting are still very low … but we would expect to see more discounting take place,” Mr Kusher said.

“And it won’t necessarily be Box Hill South in 12 months’ time. It could be areas on the outskirts of the CBD that were popular in the pandemic, but where the push to these areas won’t be as strong.

“And any weakness in the market will be most prevalent initially at the top of the market.”

8 James St, Millgrove is on the marker with a $595,000-$650,000 asking range.

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85 Lauriston Drive, Coldstream, with four bedrooms, is for sale with $1.35m-$1.485m price hopes. Coldstream is another one of Melbourne’s most popular areas.

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He added that suburbs such as Kew, Hawthorn and Brighton East, already among the most discounted in the city, might be the suburbs to watch for “more scope to negotiate on price”.

“Sellers will need to show some flexibility, that’s what happens when you come off a boom in prices and you have interest rate rises,” Mr Kusher said.

However, areas with shorter times on the market were likely to have buyers continuing to “pay top dollar and competing with a lot of people”.

The owners of 72 Lauriston Drive, Coldstream are seeking between $780,000-$860,000 for the property at auction this weekend.

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55 Range Rd, Sassafras, with four bedrooms, has $910,000-$1.012m price hopes.

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A Game Property Advisory buyer’s advocate Jim Malamatinas said while family homes in desirable suburbs and units with gardens or courtyards were still performing strongly, those on main roads or next to big blocks of units were the ones “sitting on the market longer and where discounting is happening”.

Mr Malamatinas said buyers weren’t feeling the sense of urgency they were in the pandemic’s first two years.

“Last year, buyers were in a state of FOMO and now they’re in FOOP, fear of overpaying,” he said.

“If you’re clear on your objective and strategic in your approach, there is a chance to buy well in this market, for investors in particular.”

Barry Plant Group chief executive Mike McCarthy.

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PropTrack’s economic research executive manager Cameron Kusher.

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Barry Plant executive director Mike McCarthy said most properties were now advertised for 30-plus days, compared with the “high 20s” of last year.

He said that in the outer east, where homes were still selling in as little as 10 days, the upper end of the market was “still doing really well”.

Real Estate Buyers Agent Association of Australia president Cate Bakos said Ardeer and Laverton, where properties were advertised for a median of 61 and 60 days respectively, were “potential gentrification suburbs” despite low competition among buyers.

PropTrack’s Home Price Index shows Melbourne property prices fell in May, for the first time since April 2020.

Marty Burke and Carissa McManara are selling their home in Belgrave South, one of Melbourne’s fastest selling suburbs. Along with their daughters Hazel, 6, and Rhinannon, 11.5 months, they have loved the region’s community atmosphere. Picture: Rebecca Michael

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The facade of 168 Belgrave Hallam Rd, Belgrave South.

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Marty Burke and fiance Carissa McManara moved to Belgrave South in the Dandenong Ranges from Bellfield in Melbourne’s north east in 2019.

A few days after arriving Mr Burke was already training with the local cricket club, and the friendly community has kept them busy ever since.

An amazing children’s room at 168 Belgrave Hallam Rd, Belgrave South.

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The modern kitchen and meals area.

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With their daughters Hazel, 6, and Rhiannon, 11.5 months, also loving life in the ranges, they’re not surprised homes sell fast.

“We wanted to move somewhere quieter and a bit more peaceful, and it’s an amazing place up here,” Mr Burke said.

“And the home has given us a lot of space. You can hear kookaburras and sometimes see the odd wallaby bouncing around.

“And there’s still plenty of room for guests and family to come and stay with us. You can have three generations under one roof.”

The garden has plenty of room for a cubbyhouse and swings.

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Relax in the spa pool while watching the autumn leaves change color.

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Despite their love of the location they’ve listed their four-bedroom house at 168 Belgrave Hallam Rd, Belgrave South, for $845,000-$928,000 as they prepare to move interstate for family reasons.

Ranges First National agent Grant Skipsey said in recent months many of the buyers coming to the area had been from urban suburbs like Preston and Brunswick.

“They’re coming from what used to be working class suburbs and they are wanting a bit more space for their family,” Mr Skipsey said.

“It’s about quality of life and enjoyment in these areas, and now people don’t have the commuting problem as they can work from home.”

The property has four bedrooms and two bathrooms.

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FASTEST SELLING SUBURBS

Coldstream – 10 days

Sassafras – 10 days

Millgrove – 10 days

Seville East – 11 days

Sevilla – 11.5 days

Belgrave South – 12 days

Tecoma – 12 days

Wandin North – 12 days

Upwey – 12 days

East Warburton – 12.5 days

PropTrack figures for where houses spend the lowest median days on market

SLOWEST SELLING SUBURBS