Canberra apartment sellers are slashing their prices across the territory.
People selling houses are in a better position, with only three regions showing discounting on the initial sale price.
New analysis by Domain looked at the average rate of vendor discounting across every Canberra region for houses and units over the six months to March this year. Figures are only available for regions where there were more than 30 instances of discounting recorded on Domain Group listings.
The data shows sellers of units in the Woden Valley are dropping their prices the most, with an average discount of 6.2 per cent on the original asking price. For the median $440,000 unit in the region, this is would represent a reduction of $27,280 on the initial listing price.
Inner-suburb apartments are facing discounts of 4.6 per cent, or $21,022 on an average unit, in the inner north, and 4.4 per cent, or $21,780, in the inner south.
Belconnen apartments are being reduced, on average, by 4.4 per cent but this is the lowest discounting rate for the northside region in more than six years.
Units in Gungahlin and Tuggeranong were reduced an average 4.1 per cent and 4 per cent respectively.
For houses, only Belconnen, Gungahlin and Tuggeranong recorded enough instances of discounting over the period.
Gungahlin had the highest average at 4.3 per cent. This is almost a $30,000 discount on the median of $675,000. Belconnen and Tuggeranong had an average discounting rate of 4.2 per cent and 4.1 per cent, respectively.
The difference between discounting rates for houses and units comes down to auctions, according to LJ Hooker Dickson director Stephen Bunday. The average unit in Canberra is not normally sent to auction. Last month of the 186 auctions in the territory only 24 of those were apartments.
"The logical explanation for why there is not enough data [for houses] in most regions is that a lot of properties would have gone to auction and sold," Mr Bunday said.
"The ones that haven't sold are usually listed at a price-plus, for example, $950,000-plus ... you can't record discounting for those."
Mr Bunday said the regions where discounting had been recorded for houses was mainly due to location and the percentage of auction to private treaty sales.
"[Belconnen and Tuggeranong], they contain the outer suburbs, and the further away from the city it's a bit harder to sell," he said.
"The auction to private treaty ratio in the Tuggeranong office [LJ Hooker], is about 30 to 70. Belconnen is auction-oriented but not so much when you get to suburbs such as Macgregor and Charnwood."
Woden Valley had one of the starkest differences between houses and units. There were not enough instances of discounting for houses, but units in the region have the steepest discounting rate. Luton Properties Woden manager Anthony McCormack attributed this to supply.
"We're seeing a lot of units in developments, and that's probably what's causing the pricing adjustments there," he said.
Woden's median unit price dropped 2.2 per cent, the latest Domain data shows, with Phillip units leading the decline, down 13.8 per cent. Average time on market for units in the region is 109 days.
House prices in Woden Valley were up 6.7 per cent over the same period, and the average time on market is 72 days.
"People that are buying houses in Woden are long-term buyers, they're not really at the whims of trends," said Mr McCormack.
"It's the location, geographically it's very central and it's underpinned by a good town centre and hospitality offerings. It's very sought-after and easy to get everywhere - that's what keeps the market really strong."
Over the 12 months to March 2019, both house and units prices dropped in the nation's capital. According to the Domain House Price Report, Canberra's median house price dropped 2 per cent and the median unit price fell 1.7 per cent.
- This story first appeared on Allhomes.com.au.