Revealed: The capital city suburbs where house prices won’t rise as investors are warned to stay away
- Low-priced suburbs in Perth, Brisbane and Darwin would not support growth
- Properties in these capital city suburbs have a median price under $600,000
- This may be appealing, but stagnating market means prices will continue to fall
Investors have been warned to stay away from purchasing property in several cheap suburbs across Australia’s capital cities.
Real estate financial modelling shows market conditions in some suburbs in Perth, Brisbane and Darwin would not support growth.
Properties in these suburbs are attractive with median prices of under $600,000 but investors have been warned to stay away because they will not increase in value.
The Perth locations investors should avoid are the outer suburbs of Henley Brook (pictured), Wandi and Jindalee, as well as the middle-ring suburbs of East Cannington and Bentley
A Brisbane suburb with low growth is Bahrs Scrub (pictured) in the Beenleigh area south of the city. Properties in Bahrs Scrub are regularly being sold for about $80,000 below the average
In Perth, these suburbs include Henley Brook, Wandi and Jindalee, as well as the middle-ring suburbs of East Cannington and Bentley.
The median house price in Perth has dropped 6.3 per cent over the past three years.
In Brisbane, investors have been warned to stay way from Bahrs Scrub in the Beenleigh area south of the city.
Properties in Bahrs Scrub are regularly being sold for about $80,000 below the average.
Darwin suburbs to avoid include Rosebery, Farrar and Howard Springs which are all located in the wider Palmerston area.
The median house price in Darwin has fallen a massive 12 per cent, with the suburb of Rosebery falling 17 per cent over the past three years.
The Darwin suburbs to avoid buying property are Rosebery (pictured), Farrar and Howard Springs which are all located in the wider Palmerston area
Suburbs with low demand for housing but have many properties available are unfavourable for investors as there is no market pressure for prices to increase
Suburbs with low demand for housing but have many properties available are unfavourable for investors as there is no market pressure for prices to increase.
If an area has experienced a recent price fall over a short period, it is expected the price will continue to fall for a long period of time.
Property analyst, Jeremy Sheppard, said if an investor owns a property in these suburbs, they should try to sell it as quick as possible.
‘The research showed that vainly holding on to properties in some of these locations could see your property wealth erode every year,’ he said to realestate.com.
Investors should shift their focus to low priced suburbs around Adelaide, Hobart, Canberra and the Gold Coast-Tweed area as these cheap properties are expected to grow in value.
‘The Canberra-Queanbeyan region has taken out the first and second places for forecast price growth, partly due to affordable house prices close to our nation’s capital,’ Mr Sheppard said.
‘Both Charnwood and Karabar are near Canberra, which means housing is in strong demand from public servants.’