Every state in Australia has at least one region on the 'National Dirty Dozen' list of the worst places to buy property. Among them, New South Wales and Queensland each have three regions identified as high-risk for property investment.
According to property analyst Mr. Terry Ryder, all these poor-performing areas share common characteristics, including a significant decline in sales activity, high vacancy rates, and falling property prices.
New South Wales:
Parramatta in Sydney has been listed as a high-risk area for property investment. Although the region has strong development momentum, infrastructure, and employment opportunities, the market has experienced periods of oversupply and reduced property transaction activity.
In addition, the apartment market in Sydney's inner south is also at risk, including Mascot, Wolli Creek, Waterloo, and Zetland, where property sales volumes have plummeted.
Another region on the list is Sydney Olympic Park, which is one of the worst-performing markets in Sydney, not only seeing a decline in sales volume but also recording the highest vacancy rate in the greater Sydney metropolitan area.
Queensland:
The unit market in inner-city Brisbane is the worst in Australia. Currently, nine suburbs within the greater Brisbane metropolitan area are considered high-risk for property investment.
These include the CBD, with a vacancy rate approaching 10%; South Brisbane, with a vacancy rate of 8%; and Fortitude Valley, Kangaroo Point, Kelvin Grove, Milton, Bowen Hills, and Hamilton, all of which have vacancy rates of around 6%.
Another region in Queensland on the list is Mount Isa, where the property market remains in a slump, with very few properties successfully sold within a quarter in areas such as Menzies, Pioneer, and Mile End.
The third group on the list includes several resource-based towns, such as the southwestern towns of Roma, Miles, and Wandoan, as well as Clermont and Collinsville in Central Queensland.
Victoria:
The inner-city apartment market in Melbourne is experiencing oversupply and is considered a high-risk area for property investment. Suburbs including Hawthorn and Hawthorn East have both seen a significant decline in sales.
Western Australia:
While the property market in some parts of Perth is showing signs of recovery, the inner-city apartment market remains at risk. In Como and South Perth, median property prices have fallen by 6% to 7% compared to three years ago.
South Australia:
Only Whyalla in South Australia has been listed as a poor area for property investment.
Ryder noted that the local property market has been affected by the downturn in the resources sector. The local mining company, Arrium, fell into financial distress, but with a buyer now identified, the property market is expected to recover.
Northern Territory:
The property markets in Darwin and Palmerston are increasingly declining, particularly in the unit market. Both regions have high vacancy rates, and property prices and rents have been consistently falling.
Tasmania:
Although Tasmania is gradually becoming a popular property market, some small towns in the west remain poor areas for investment. For example, Queenstown, Zeehan, and Rosebery have seen their property markets collapse following the reduction of resource projects.