The 24 Aussie suburbs investors should avoid

While property prices are continuing to fall across much of the country, an investment specialist has shared top tips for avoiding "danger" suburbs.

Suburbanite founder and director, Anna Porter, has released her 24 Australian suburbs that risk falling into a negative growth trap using CoreLogic data in the 12 months to November 2017.

“I compile this report every year to empower people to make decisions on actual numbers, not shopping centre models and spruikers," she said in the report.

"Yep, many markets that investors are encouraged into today are actually at the peak of their growth cycle."

Brookvale, 16 kilometres northeast of Sydney's city centre, and Glenorie, 44 kilometres northwest of the CBD, have both suffered price drops. Photo: Getty
Brookvale, 16 kilometres northeast of Sydney's city centre, and Glenorie, 44 kilometres northwest of the CBD, have both suffered price drops. Photo: Getty

Ms Porter revealed Sydney suburb Brookvale, 16 kilometres northeast of the city centre, has suffered an over-development of units and the unit market has suffered a decline of 9.8 per cent during the 12-month period.

"With a lack of good transport links to the area, but a housing style that is predominantly for young couples, singles and retirees there is no surprise that it underperforms when the market starts to cool off,” she said.

The outlook was similar for Glenorie, 44 kilometres northwest of Sydney CBD, which experienced a drop of 8.3 per cent.

“The suburb has a median price of $1,820,000 yet is still being swooped with the negative growth figures," she said.

"Prestige rural and residential locations tend to get hit first when the market starts to cool off."

East Melbourne had a unit price fall of 15.5 per cent, despite its close proximity to the city centre. Photo: Getty
East Melbourne had a unit price fall of 15.5 per cent, despite its close proximity to the city centre. Photo: Getty

In Victoria, the outlook was similar for units in East Melbourne with a fall of 15.5 per cent.

Ms Porter said the drop could be due to an oversupply of units and is despite its ideal location near Melbourne's CBD.

"The Melbourne unit market has been struggling with supply for nearly a decade now and the local authorities are not slowing the building down enough to allow the supply to be absorbed," she said.

The popular surfing location on the Great Ocean Road, Lorne, also suffered a blow in the last 12 months with a unit drop of 37.1 per cent.

Ms Porter said Brisbane is also seeing an oversupply of units. Photo: Getty
Ms Porter said Brisbane is also seeing an oversupply of units. Photo: Getty

East Ipswich houses in Queensland's inner city reported a drop of 3.5 per cent and Coomera houses on the Gold Coast fell 5.5 per cent. Idalia, near Townsville, nosedived 43.8 per cent.

In South Australia, the worst performers for houses were regional town Solomontown, north of Adelaide, which recorded a drop of 27.5 per cent and the inner-southern suburb Eastwood with 28 per cent decline.

A full list of the 24 suburbs the Suburbanite reports suggested avoiding is below, showing price declines over the 12 months to November, 2017:

Tasmania

Rocherlea houses -12.5 per cent
Trevallyn units -25 per cent

ACT

Gilmore houses -5 per cent
Downer units -39 per cent

Victoria

East Melbourne units -15.5 per cent
Chewton houses -30.9 per cent
Lorne units -37.1 per cent

Queensland

Coomera houses -5.5 per cent
East Ipswich houses -3.5 per cent
Idalia houses -43.8 per cent
Telina units -32.9 per cent

South Australia

Mansfield Park houses -3.9 per cent, units -8.4 per cent
Solomontown houses -27.5 per cent
Eastwood units -28 per cent

Western Australia

Burswood houses -37.2 per cent
Crawley units -46.2 per cent

Northern Territory

Katherine houses -19 per cent
Marrara units -18.8 per cent

New South Wales

Glenorie houses -8.3 per cent
Olympic Park units -2.3 per cent
Turramurra units -4.6 per cent
Brookvale units -9.8 per cent
Peak Hill houses -37.2 per cent
Narooma units -19.8 per cent

  • The Data in this report is for the 12 months to November 2017 and has been sourced from CoreLogic.