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The top 10 danger zone suburbs in Australian property

PR Newswire

Broadbeach Waters, Qld., Oct. 6, 2021 /Medianet/ --

The top 10 danger zone suburbs in Australian property

 

Unit supply risks

 

The top 10 danger zone suburbs in Australian property at the moment are all areas where units are oversupplied.

 

Pete Wargent, the co-founder of Australia's first national property buyer's agency network, BuyersBuyers, said there had been a 'race for space' over the past 18 months, sending house prices higher, but unit prices in some high-supply areas look riskier.

 

Mr Wargent of BuyersBuyers said, "although demand has dropped sharply given the absence of international students and other visitors, there are still some areas with a high volume of potential new units in the pipeline over the next couple of years".

 

"The danger areas aren't limited to one state or city but are rather found where there are clusters of new developments", Mr Wargent said.


Doron Peleg, the founder of RiskWise Property Research, said that unit supply was a factor landlords need to be wary of.

 

Mr Peleg said, "we have compiled our top 10 danger zone suburbs where investors should be wary about the risk of rental vacancies, and capital loss, particularly investors consider new or off-the-plan purchases".

 

"The CBD areas of the capital cities have been a risk area for some time, but our danger zone list also incorporates some locations much further afield, such as Gosford and Broadbeach, for example" Mr Peleg said.

 

Figure 1 – Top 10 danger zone suburbs

 

Pete Wargent of BuyersBuyers said that investors have turned their attention to houses over the past 18 months, reflecting an understanding of the risks.

 

Mr Wargent said, "established units can still be a solid investment in supply-constrained areas, especially the in the largest capital cities."

 

"It is generally the rising land values that deliver the returns in Australian real estate, so units in boutique blocks with a high land-to-asset ratio and a point of scarcity value tend to fare best. On the other hand, there tends to be more risks in generic high-rise of higher-density developments".

 

"There are many uncertainties about the return of international migration at present, and therefore the risks of buying a new unit are even higher than they normally are right now" Mr Wargent said.

 

ENDS

For all media enquiries, contact BuyersBuyers.com.au Media Manager Alison Sollory, alison.sollory@buyersbuyers.com.au

Visit www.buyersbuyers.com.au

About BuyersBuyers

BuyersBuyers connects people looking to buy a property with some of the best buyer's agents around Australia. Our aim is to level the real estate playing field to give first time, experienced home buyers and property investors a personalised service with the advantage of having a property expert working for them, serving only the interests of the buyer. Our national network of top buyer's agents is the largest in Australia and offers some of the most affordable buying solutions on the market.   

 

All our buyer's agents are licensed, experienced, and are committed to working in the best interest of our clients. We offer excellent value for money with very competitive and affordable fees and no commissions. What you see is what you get. Our bespoke property research and tools enable buyer's agents and buyers to stay informed on market trends and our insightful property reports help determine the best places to buy. That's why we are quite simply, 'the better way to buy property. 

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