Elizabeth Tilley, Property Journalist
First published 31 Oct 2026, 5:00am
Homeowners in some of Brisbane’s wealthiest suburbs are accepting discounts of more than $250,000 on their asking prices, as a leading property analyst warns the housing downturn is unfolding at the fastest pace he has witnessed in his career.
The latest realestate.com.au figures to October reveal Hamilton, Chelmer, Cannon Hill and St Lucia are among Greater Brisbane’s biggest hotspots for vendor discounting, as rising listings, weaker buyer demand and four interest rate hikes squeeze sellers.
This house at 21 Lynell St, Hamilton, has had its price reduced from $3.9m-$4.1m to $3.6m.
In blue-chip Hamilton, houses are selling for $254,345 (9.1 per cent) below their original asking prices, compared with no median discount recorded in January — right before the first interest rate hike in February and the federal government’s tax reforms announced in May.
Cannon Hill is recording a median discount of 8.1 per cent compared to 3 per cent in January, while St Lucia has a median vendor discount of 8 per cent ($166,800) as of September, compared to 4.5 per cent in January.
Across Brisbane, the median vendor discount has widened from 1.5 per cent in January to 4.1 per cent in October.
This house at 38 Somerton St, Bracken Ridge, is on the market for a reduced price of offers over $1.1m, after originally being listed for offers over $1.175m.
REA Group senior economic analyst Megan Lieu said a clear trend was emerging, with many of the suburbs recording the largest vendor discounts either sitting above Brisbane’s median house price or located in previously booming markets such as Logan and Ipswich.
She said the strong price growth experienced in those more affordable markets over the past five years was proving difficult to sustain, while higher-end suburbs were particularly vulnerable when interest rates rose.
“Brisbane housing affordability is the worst on record,” Ms Lieu said. She said rising mortgage rates and reduced borrowing capacity meant buyers were increasingly unwilling to stretch their budgets to secure a property.
Brisbane suburbs seeing the strongest vendor discounts. Source: Realestate.com.au
“People are less willing to push beyond the limits to purchase a property they may not be able to afford,” she said.
“We are seeing an increase in the percentage that properties are being discounted, and that’s probably driven by the fact that sellers are adjusting their expectations to align with what we’re seeing in the market.”
The growing discounts come as separate SQM Research data reveals the broader deterioration in advertised property prices, with Brisbane’s combined house and unit asking prices falling 9.1 per cent over the past six months and 5.9 per cent in the past three months alone.
Louis Christopher, SQM Research managing director.
Unlike vendor discounting, which measures the difference between original asking and eventual sale prices, SQM’s figures capture movements in advertised prices across the market, including reductions to existing listings and prices set for new stock.
SQM Research managing director Louis Christopher said Brisbane’s asking prices peaked in early April and had since been falling at an extraordinary rate.
“The rate of decline is the quickest I’ve seen in my career,” Mr Christopher said.
He said vendors were increasingly willing to reduce their expectations, but buyers were retreating even faster, forcing sellers to repeatedly reassess their prices.
“They are willing to reduce asking prices, but the problem is buyers have taken two steps back,” he said.
This duplex at 2/197 Golden Four Dr, Bilinga, has had its price reduced from offers over $1.999m to offers over $1.799m.
Mr Christopher warned another rise in listings in November would add to buyer caution, with little prospect of relief from interest rate cuts or policy changes in the next three months.
“The immediate future is pretty sour for vendors,” he said. “Valuations today will be lower six months from now. I’d sell first and then buy.”
The Gold Coast was facing more severe pressures, with SQM figures showing combined asking prices down 10.5 per cent over six months and unit asking prices plunging 15.1 per cent amid rising supply and weakening investor demand.
Mr Christopher expected Brisbane to find a bottom first, supported by its diversified economy and higher proportion of owner-occupiers, but warned conditions would worsen before improving.
This four-bedroom house in Albany Creek is on the market for a reduced price of offers over $1.475m.
The pressure is already being felt by Brisbane couple Jo and Steve Williamson, who have had two contracts collapse since listing their extensively renovated Albany Creek home in July.
One buyer could not secure finance, while another was unable to sell their existing property.
Despite attracting offers in the low-to-mid $1.5 million range, the couple have reduced their asking price from $1.595 million to offers over $1.475 million as they pursue their dream move to acreage.
“We haven’t had a lack of buyers. We’ve had multiple contracts that haven’t completed,” Mrs Williamson said.
Selling agent Simon Whitehead from Place Purpose Group said contracts subject to the sale of another property were becoming increasingly common, creating uncertainty for vendors and holding up transactions.
Jo and Steve Williamson are selling their Albany Creek home. Photo: Steve Pohlner
RE/MAX Results agent Ricardo Baggio said sellers who ignored buyer feedback risked losing more money as their properties languished on the market.
He recently worked with the owner of a five-bedroom Sumner house to reduce price expectations from $1.5 million to $1.35 million.
“You’ve got to be honest with your clients or they’re going to miss the mark and lose a lot more money,” he said.
Belle Property Sandgate agent Allan Brookes said vendors who listed before conditions deteriorated were finding the adjustment particularly difficult.
“People are feeling a little bit bruised,” he said.
Gold Coast suburbs that are seeing the biggest vendor discounts. Source: Realestate.com.au
Meanwhile, Real Estate Buyers Agents Association president Zoran Solano said buyers were increasingly walking away from deals over fears of further price falls.
“Buyers are terrified of buying today and seeing a similar property sell for less at Christmas,” he said.
“That fear is paralysing people, and it’s causing chaos for vendors and sales agents who think they have a done deal.”
This house at 1 Oak Beach, Oak Beach, in Port Douglas, has had it’s price reduced from $2.1m to $1.9m.
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