House asking prices rapidly falling

According to a data collected by property information provider RP, people currently looking to sell their homes are having to significantly reduce their asking price if they expect to make a sale.

The data shows that they are having to cut the original sale price by nearly 8% in capital cities amid the turbulent economic climate.

Some areas on the coast have been found to make discounts nearing 20%.

The report conducted by RP compares the initial asking price of a property against the amount it actually goes for.

RP data research analyst Cameron Kusher said that the high levels of discounting recently seen suggests that the price properties are being listed at may not be in line with the markets expectations.

But he added that this is to be expected, as suburbs such as Byron Bay, Paradise Point, San Remo and Wangi Wangi are known for their lush coastal lifestyle, so homes in these locations could be seen as "discretionary assets''.

Mr Kusher went on to say: "As high net worth individuals feel the pinch of dramatic falls across equity markets, lower than anticipated bonuses and in some cases job losses, the holiday home or other discretionary assets are usually the first to go."

Among the capitals cities, Melbourne saw the most substantial level of discounting over the last year, with cuts of around 7.7% being required in order to achieve a sale.

On the other side of the coin, Darwin experienced the lowest rate of discounting at 3.8%.

In terms of units, Perth recorded the highest average discount at 7.1%, and Canberra with the lowest at 3.6%.

The higher discounted superb areas saw discounts of over 18%, with Perth's Saint James averaging at 18.6%, South Australia's Hove at 18.2%, Queensland's Paradise Point at 17.3% and Bryon Bay seeing 17.3% reductions.

Those hoping to sell a unit in South Australia's Aldinga Beach could have to cut the price by a massive 23%.

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