20 sluggish suburbs property investors should avoid

By Gerv Tacadena | 17 Jun 2022

 

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 : tweed heads south , canterbury , ferntree gully , leumeah , mt colah

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