Home seekers are bagging properties for an average of up to 15 per cent below the list price in pockets of Sydney as experts declare the city has become a “buyer’s market”.

The huge discounts, historically rare in Sydney’s pressure cooker housing market, have helped buyers save over $1m in some areas, with more discounts expected to come as spring listings pile up.

It’s followed what was Sydney’s busiest August for new property listings since records began in 2009.

The listings bump, which continued into September, took some heat out of the market and meant sellers had to adjust their expectations to bait buyers.

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This Neutral Bay unit was listed at $1.6m but sold for $1.45m.

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SQM Research director Louis Christopher said the higher supply of listings has been coupled with a recent drop in buyer demand following the Reserve Bank’s hesitancy to cut interest rates.

“There were a lot of would-be buyers who were waiting for a cut that would be pulling out of the market now that a cut looks unlikely this year,” he said.

Mr Christopher added that slowing migration was another factor pulling down demand.

“Migration is still high but it’s been dropping. That’s significant for Sydney and Melbourne which remain the most common landing pad for new arrivals.”

Exclusive research from SuburbData revealed house hunters were getting the biggest average vendor discounts in much of Sydney’s southwest.

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Mahesh Kumar, with wife Uma, snapped up four Sydney rentals for undermarket, and used the same tactics to get $155,000 off the list price of a home in Brisbane. Picture: Steve Pohlner

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This included Fairfield Heights and neighbouring suburbs Harrington Park and Narellan, where sellers were slashing an average of about 15 per cent off their prices before selling.

House discounts in southwest suburbs Sefton and Macquarie Fields average about 8.3-8.7 per cent.

That’s substantially more than the 1-3 per cent discounts that had largely been the norm for sellers outside the auction market in most suburbs over recent years.

The discounts have tended to be higher in the southwest because of its proximity to a slew of new housing estates, which mean home buyers are spoiled for choice, experts explained.

There was a similar trend in Mays Hill, in the Parramatta area, where a large supply of units has helped push down apartment prices. Average vendor discounting in the suburb was 8.6 per cent.

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This Bondi Beach home is for sale at $1m less than the original list price.

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Apartment buyers in Neutral Bay were getting an average of 10.5 per cent off list prices – the highest for a suburb within 10km of the Sydney CBD.

Digital Finance Analytics director Martin North said discounting levels could rise as higher interest rates force more homeowners to sell.

“We are also seeing more ‘forced’ sales due to mortgage pain (and) arrears, where vendors have to sell,” he said.

“Despite the expectation of lower interest rates, eventually, I suspect we will see vendor discounts rising after the summer selling season.”

Among the homes currently listed with the biggest discounts is an apartment on Bigge St in Warwick Farm. It was originally listed in June for $419,000 but the price has since dropped 19 per cent to $339,000.

This Wentworth Falls home was listed for $1.75m and sold in September for $1.55m.

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A house in Berowra Waters is currently listed for $1.55m, down from the original $1.79m list price, according to a SQM Research report.

There were even bigger discounts in the top end of the Sydney market, agents revealed.

This included a Bondi Beach apartment on Sir Thomas Mitchell Rd now listed for $8.5m, down from $9.5m earlier this year.

In Palm Beach, a house on Bynya Rd is for sale at $6.3m – $900,000 lower than in August.

IT manager Mahesh Kumar has snapped up four Sydney properties for prices that were “undermarket” and said there were good deals for those who knew how to get them.

“I try to make myself known to agents and ask them if they have any sellers who want to sell off market or want a quick sale. That’s where you can potentially buy undermarket.

DFA’s Martin North said bigger discounting may come. Picture: Hollie Adams

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“Most buyers want a 42 day settlement, but I always have my finances ready and I offer 30 days or less. You just have to do a lot of research. I spent a lot of time learning about the market.”

He said he used the same principles when he recently moved from Sydney’s west to Brisbane, bagging a house that had been advertised for $1.18m for $1.025m, a drop of $155,000.

AVERAGE AMOUNT BUYERS ARE GETTING BELOW LIST PRICE

Narellan houses 15.8%

Harrington Park houses 15%

Fairfield Heights houses 14%

Leura houses 13.7%

Wentworth Falls houses 12%

Neutral Bay units 10.5%

Sefton houses 8.7%

Mays Hill units 8.6%

Macquarie Fields houses 8.3%

Ultimo units 7.4%

Source: SuburbData