Australian real property: suburbs in NSW, Vic, WA, SA and QLD’s property prices will plunge

news australian property prices will plunge

Although Australia’s property market surpassed a $9 trillion value on Thursday, some property owners stand to lose a lot of money.

According to a new market study, ten suburbs across the country may be the worst places to invest in in the future due to an “oversupply” of apartment units in those areas.

Unfortunately, homeowners in such postcodes may not benefit from the same tax breaks as the rest of the country.

Three suburbs in NSW and Victoria, two in Western Australia, and one in both South Australia and Queensland are in the “danger zone,” according to a list compiled by RiskWise Property Research and BuyersBuyers.

According to the report issued on Tuesday, apartments were a death knell for some homeowners. Over the last 18 months, there has been a ‘race for space,’ pushing home prices higher, while unit prices in some high-supply regions appear riskier.

Schofields, in Sydney’s northwestern suburbs, was named the riskiest place to invest in an apartment, a title that no one wants.

Over the next two years, Schofields will build a massive 3397 additional flats, representing a 115.7 percent increase in existing stock and pushing down prices.

The Melbourne neighbourhood of Box Hill, east of the CBD, was next on the list, and it did somewhat better than its Sydney equivalent.

Over the following 24 months, an extra 1833 apartments will be built in Box Hill, accounting for a fifth of all current flats in the region.

Both Perth and Adelaide’s city centres are expected to perform poorly, with a 6.5 percent and a 9 percent increase in those suburbs, respectively.

Subiaco, a Perth suburb, and Broadbeach, on Queensland’s Gold Coast, received honourable mentions.

Another two NSW and Victorian suburbs made the cut.

Over the following few years, 1619 and 1274 apartments will be built near Gosford, a 1.5-hour drive from Sydney, and Rouse Hill, on the fringes of Sydney’s west.

The real estate research group also issued a separate list focusing only on New South Wales and Victoria, the country’s two largest property markets.

Areas on the outskirts of Sydney and those in the CBD are likely to be risky to invest in.

Along with the ones already listed, these suburbs include Zetland, Liverpool, Epping, and Burwood.

Because of the high rental vacancy rates in Melbourne’s CBD and inner-city, buyers are being advised to avoid these areas.

The Australian dwelling market increased 20.3 percent in the year to September, which is the highest rate of annual appreciation since June 1989.

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