An expert is warning investors to avoid particular markets that are not poised to do well over the coming months due to sluggish sales activity and weak demand.
A study by Suburb Help identified 20 markets where inventory levels have been rising.
Inventory levels is a measure used to assess the activity in the market and refers to the amount of time it would take to sell all houses and units, assuming no properties are added to the market.
An upward trend in inventory levels means that properties are taking too long to sell, indicating a lack of interest from buyers.
Suburb Help chief property strategist Veronica Morgan said days-on-market are also on the high side in these suburbs.
“When you put those data points together, it suggests that prices in these locations will either grow slowly in the medium-term, or go backwards,” she said.
Top 20 suburbs for investors to avoid
Housing Markets
Unit Markets
Suburb
Inventory level
Suburb
Inventory level
Yarrawonga
6.9 months
Parramatta
10.7 months
Diggers Rest
Above 12 months
Sydney
Above 12 months
Girrawheen
7.8 months
East Perth
9.9 months
Yokine
8.8 months
Perth
11.5 months
Midland
10.8 months
Rouse Hill
Above 12 months
Rivervale
7.6 months
Lidcombe
Above 12 months
St James
8.8 months
Homebush
Above 12 months
South Guildford
6.5 months
Mascot
Above 12 months
Zuccoli
10.1 months
West Melbourne
Above 12 months
Riverton
6.6 months
Subiaco
7.8 months
Bellamack
8.2 months
Sydney Olympic Park
Above 12 months
Lynwood
7.5 months
Canterbury
10.6 months
Bakewell
8.6 months
Haymarket
Above 12 months
Woodroffe
7.2 months
Mosman Park
9.6 months
Cockburn Central
Above 12 months
Cabramatta
6.8 months
Driver
6.5 months
Nedlands
Above 12 months
Johnston
6.9 months
Arncliffe
Above 12 months
Waterford
Above 12 months
Parap
9.1 months
San Remo
6.7 months
Jolimont
10.9 months
Vineyard
Above 12 months
Notting Hill
10.6 months
Ms Morgan said investors must ensure that they are not investing in an area under a lull, especially given the increasing interest rates.
“It is becoming even more important for property investors to identify the best investment locations, and to avoid those that are unlikely to give them a strong financial return,” she said.
“Some of these locations have been stinkers for a long time, others, though, have been good places to invest in the past and might again be good places to invest in the future — right now, though, I would advise property investors to avoid these markets, because there are much better alternatives.”
—
Photo by @kaip on Unsplash.
Top Suburbs :
dulwich hill
,
sth toowoomba
,
belmont
,
springwood
,
collingwood
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