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."
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."
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.
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.