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Danger Suburbs for Property Investment in Australia

Overseas property investors always need to be careful where they invest, and a list of danger suburbs in Australia has been compiled in the latest Price Predictor Index from Hotspotting.

Danger suburbs are those areas where there is a high expectancy of prices falling in the near future, and the list picks out a total of 66 danger suburbs across Australia.

The most dangerous state according to the list is Queensland, where 26 danger suburbs were reported. New South Wales contained 17 danger suburbs, whilst there were 10 in Northern territory and 3 in each of Western Australia and Tasmania.

South Australia and the Australian Capital Territory showed no Danger suburbs, indicating that overseas property investors may wish to investigate these two states.

The strongest concentrations of danger suburbs were in the Sydney city and Parramatta areas, the Brisbane and Melbourne inner cities, and in the Queensland regional towns of Mount Isa and Gladstone, which have eight and six danger suburbs respectively.

Hotspotting managing director Terry Ryder said: ‘The ones to avoid are primarily in the Sydney apartment market and the Brisbane inner-city apartment market. Then there’s still some in regional Queensland and those areas impacted by the mining sector, [although] there are fewer than there were. A number of Queensland regional markets are actually showing signs of recovery.’

Despite still containing 3 danger suburbs, Western Australia is seen to be picking up.

Mr Ryder said: ‘Until recently we used to have quite a number of danger suburbs in Perth, but we don’t anymore. There are very strong signs of recovery. It’s doing the exact opposite of the two biggest cities on the east coast. It’s on its own cycle, which is often the case.’

Another area that showing strength is Adelaide in South Australia. Ryder commented: ‘We tend to regard Adelaide as the most underrated city in Australia. The SA economy is quite strong, much better than people realise, and it’s improving all the time. Their property market is very solid, very good value for money, much better rental yields than bigger cities.’

Canberra is another property market to watch, with low vacancies and rising rents which often indicate forthcoming price growth.

As previously reported, regional markets in Australia seem to be performing best, as property buyers and investors spill out from the overpriced capital cities.

Overseas property investors might want to study the below list before considering what part of Australia to invest in.

Australia’s Danger Suburbs

(Suburb, median price, H = house, U = unit, SNR = statistically not reliable)

New South Wales

  • Breakfast Point — $1.2 million (U)
  • Carlingford — $1.435 million (H) $720,000 (U)
  • Chippendale — $735,000 (U)
  • Epping — $1.81 million (H) $850,000 (U)
  • Ermington — $1.35 million (H) $775,000 (U)
  • Forest Lodge — $1.16 million (U)
  • Harris Park — $505,000 (U)
  • Haymarket — $905,000 (U)
  • Homebush — $660,000 (U)
  • Homebush West — $625,000 (U)
  • Mascot — $925,000 (U)
  • Parramatta — $655,000 (U)
  • Rhodes — $880,000 (U)
  • Waterloo — $850,000 (U)
  • Wentworth Point — $720,000 (U)
  • Wolli Creek — $755,000 (U)
  • Zetland — $850,000 (U)

Victoria

  • Carlton — $375,000 (U)
  • Collingwood — $550,000 (U)
  • Docklands — $550,000 (U)
  • Hawthorn — $2.35 million (H) $530,000 (U)
  • Hawthorn East — $2.43 million (H) $605,000 (U)
  • Melbourne CBD — $455,000 (U)
  • North Melbourne — $505,000 (U)

Queensland

  • Bowen Hills — $470,000 (U)
  • Fortitude Valley — $430,000 (U)
  • Hamilton — $1.3 million (H) $495,000 (U)
  • Kangaroo Point — $510,000 (U)
  • Kelvin Grove — $420,000 (U)
  • Milton — $410,000 (U)
  • South Brisbane — $570,000 (U)
  • Clermont — $150,000 (H)
  • Collinsville — $95,000 (H)
  • Gladstone Central — SNR (U)
  • Glen Eden — $310,000 (H)
  • Kin Kora — $300,000 (H)
  • Menzies — SNR (H)
  • Miles — $160,000 (H)
  • Miles End — SNR (H)
  • Mornington — SNR (H)
  • Parkside — $230,000 (H)
  • Pioneer — SNR (H)
  • Roma — $235,000 (H)
  • Soldiers Hill — $275,000 (H)
  • South Gladstone — $240,000 (H)
  • Sun Valley — SNR (H)
  • Sunset — $190,000 (H)
  • Townview — SNR (H)
  • Wandoan — SNR (H)
  • West Gladstone — $180,000 (H)

Western Australia

  • Carey Park — $215,000 (H)
  • Kalgoorlie — $305,000 (H)
  • Kambalda — $115,000 (H)

Northern Territory

  • Bellamack — $570,000 (H)
  • Darwin City — $410,000 (U)
  • Durack — $455,000 (H)
  • Johnston — $545,000 (H) $375,000 (U)
  • Katherine — $320,000 (H)
  • Larrakeyah — $465,000 (U)
  • Muirhead — $650,000 (H)
  • Parap — $440,000 (U)
  • Rosebery — $500,000 (H)
  • Zuccoli — SNR (H)

Tasmania

  • Queenstown — $67,000 (H)
  • Rosebery — $75,000 (H)
  • Zeehan — $82,000 (H)

Source: Hotspotting Price Predictor Index Winter 2018.

 

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