Luxury waterfront and acreage homes are being offered with as much as $2.3 million cut off the price as COVID-19 depletes the pool of big-spending buyers.
The deals are giving buyers the opportunity to snap up premium homes at prices that wouldn’t have been possible before the pandemic hit.
One of the biggest discounts is on a six-bedroom house in northern beaches suburb Bayview that includes a swim-in bar, views over Pittwater and a 10-seat home theatre.
The triple-level house on Pittwater Rd was first listed at $8.2 million but is now listed through an expressions of interest campaign at $5.9 million.
Another waterfront property in nearby Clareville was dropped to $5.7 million after originally going to market with a guide of $7 million.
The three-level house on Hudson Parade is serviced by a lift and the bedrooms have walk-in wardrobes.
Other significant property discounts ranging from $400,000 to $500,000 are being offered for luxury homes in Manly and northwest suburb Kenthurst.
Real estate experts said Sydney’s most discounted properties were often those originally priced between $2.5 million and $5 million.
These properties were a harder sell because buyers were becoming more cautious about taking on larger debts during the coronavirus crisis.
The typical market for these houses were also “aspirational purchasers” who wanted to upgrade to a luxury lifestyle but did not have an impending deadline motivating the purchase.
This meant they were happy to sit on their hands and get more certainty about the economy before making a move.
These buyers were in the opposite situation to the buyer group who have been most active during the pandemic — families who have outgrown smaller units and urgently need space.
The result was that properties priced in the middle of the Sydney market, roughly $900,000-$1.5 million, were rarely heavily discounted.
Sydney’s prestige market in the eastern suburbs was not as affected either — there have been multiple $10 million-plus sales since the pandemic started — because ultra-wealthy expats were returning.
Many of these buyers paid for their homes in cash and didn’t need a mortgage.
Property Buyer director and buyer’s agent Rich Harvey said discounts varied considerably by suburb.
“Every property is being discounted to a degree but they are not as large in the eastern suburbs or lower north shore,” Mr Harvey said.
Coastal suburbs in Sydney’s north were a different story, he said. “The prices in areas like Palm Beach tend to fluctuate a lot … there would be less demand in the current market.”
Ray White-Erskineville agent Ercan Erscan said buyer interest for homes priced above $2 million was weaker even in perennially popular regions like the inner west and Sydney’s inner south.
“There are still a lot of buyers once you get below $1.8 million,” he said.