'Local market dynamics' key to better housing deals

HOME buyers may have more negotiating power than they realise, with new data revealing vendors in some suburbs are accepting discounts of more than 14 per cent to secure a sale.

Analysis of exclusive Cotality data by the Real Estate Buyers Agents Association of Australia identified Australia's 20 most negotiable suburbs, where vendor discounting ranges from 8.7 per cent to more than 14 per cent below asking prices.

REBAA president Zoran Solano said the findings reinforced the importance of understanding local market dynamics rather than relying on broad national housing trends.

§ Local market dynamics shape negotiations

"While national property prices may tell one story, conditions on the ground can vary significantly from suburb to suburb," Solano said.

"The data shows there are many markets where sellers are becoming increasingly negotiable, which is creating opportunities for buyers who do their research and enter the market well prepared.

"In many markets, buyers who negotiate effectively may be able to secure a property for considerably less than the advertised price."

The rankings reveal negotiation opportunities are emerging across regional, suburban and prestige markets, with diverse locations from Culburra Beach to Killara featuring in the national top 20.

Sydney's Killara ranked sixth nationally, with vendors accepting discounts of 9.9 per cent despite the suburb's median dwelling value sitting at almost $2.74 million, while Victoria's Blairgowrie recorded discounts of 9.5 per cent alongside an annual value decline approaching 10 per cent.

Queensland suburbs Ashmore, Merrimac and Paradise Point also featured prominently among the nation's most negotiable markets.

"These figures are a reminder that sellers and buyers need to focus on current market conditions in their local area rather than assuming every market is behaving the same way," Solano said.

"For buyers, understanding vendor discounting can provide valuable insight into where negotiation opportunities may exist and where expectations between buyers and sellers are beginning to align."

§ Higher inventory gives buyers more choice

Cotality research director Tim Lawless said reduced new listings on the market were also giving buyers more choice and negotiation power.

“Although the flow of new listings coming to market is tracking almost 20 per cent below average for this time of the year, advertised supply levels have accumulated as homes take longer to sell,” Lawless said.

“Higher inventory levels are giving buyers more choice and greater negotiation power, which is in stark contrast to a year ago when advertised supply was tight and sellers held most of the leverage at the negotiation table.”