Owners of these 10 suburbs across Australia are going to miss out, in large part, thanks to an unfortunate factor.
Although Australia’s real estate market surpassed a valuation of $ 9 trillion on Thursday, some homeowners will largely miss it.
New market research shows 10 suburbs across the country may be the worst places to invest in the next few years due to the oversupply of apartments in those areas.
Unfortunately, the owners of these postal codes might not enjoy the same great benefits as the rest of the country.
A list of joint research by RiskWise Property Research and BuyersBuyers revealed that three suburbs in NSW and Victoria, two in Western Australia and one in South Australia and Queensland are in the “danger zone”.
The report, released on Tuesday, warned the apartments were the death knell for some homeowners.
“There has been a ‘space race’ over the past 18 months, pushing up house prices, but unit prices in some high-supply areas seem riskier,” he said.
Sydney’s northwest suburb of Schofields has won the award no one wants for being the riskiest area to invest in an apartment.
A whopping 3,397 new apartments are to be built at Schofields over the next two years, which will represent a 115.7 percent increase in its existing inventory, pushing prices down.
Next on the list was the Melbourne suburb of Box Hill, east of the CBD, which fared slightly better than its Sydney counterpart.
An additional 1,833 apartments will appear in Box Hill over the next 24 months, which will then represent a quarter of all existing apartments in the area.
The city centers of Perth and Adelaide are also not expected to perform very well, with these suburbs experiencing increases of 6.5% and 9% respectively.
Another suburb of Perth, Subiaco, also received an honorable mention, as did Broadbeach on Queensland’s Gold Coast.
Two other New South Wales and Victorian-era suburbs were on the list.
Gosford, a 1.5 hour drive from Sydney, and Rouse Hill, on the western outskirts of Sydney, will experience 1,619 and 1,274 apartments over the next few years.
Footscray’s postcode in west-central Melbourne and the city’s south will grow vertically by 27.5% and 21.1% respectively by 2023.
The real estate research group has also released a separate listing focused only on NSW and Victoria, as they are the two largest real estate markets in the country.
In Sydney, areas on the outskirts of the city as well as those close to the CBD should be dangerous for investing.
These suburbs include Zetland, Liverpool, Epping and Burwood as well as those already mentioned.
In Melbourne, buyers are mostly cautioned against parts of the CBD and downtown due to high rental vacancy rates.
Regions include Coburg, Prestons, Brunswick, Burnley, Blackburn and Collingwood.
The report came out just two days ahead of a bullish forecast for the real estate market from CoreLogic.
Just five months after reaching a value of $ 8 trillion, CoreLogic on Thursday estimated the total value of residential real estate in Australia at more than $ 91 trillion.
“Most housing markets (are) now past their peak,” CoreLogic noted.
National home values hit $ 719,209 in September, while units stand at $ 586,993.
The Australian housing market grew 20.3% in the year ending September, the highest annual appreciation rate since June 1989.