property market

Looking to break into the property market? AVOID these areas

PHOTO: Property Danger Zones

  • Top 10 danger zone suburbs for investors to steer clear of have been named
  • On the hit list due to oversupply of units, carrying higher risk of rental vacancies 
  • Include three each in New South Wales and Victoria, two in Western Australia
  • Schofields, Box Hill, Subiaco, Gosford and Footscray head the national list

Aspiring investors looking to get their foot on the property ladder have been warned which areas to avoid, including a few surprises.

RiskWise Property Research and BuyersBuyers have listed the top 10 danger zone suburbs due to an oversupply of units, bringing an increased risk of rental vacancies and capital loss.

Postcodes on the hit list are spread across Australia with three each in New South Wales and Victoria, two in Western Australia and one each in South Australia and Queensland.

While demand has seen a sharp drop in the last 18 months due to the absence of international visitors and students, some postcodes remain areas of concern due to a high volume of potential new units in the pipeline.

The growing suburb of Schofields in Sydney’s north-west tops the list, where 3,397 new units are in the pipeline to be built in the next two years, accounting for 115.7 per cent of existing stock.

Investors have been urged to steer clear of  the Sydney suburb of Schofields (pictured), where an oversupply of new units could result in rental income and capital loss

Investors have been urged to steer clear of  the Sydney suburb of Schofields (pictured), where an oversupply of new units could result in rental income and capital loss

POSTCODES TO AVOID

1.Schofields (NSW)

2. Box Hill (Victoria)

3.Subiaco (Western Australia)

4. Gosford (New South Wales)

5. Footscray (Victoria)

6. Perth (Western Australia)

7. Rouse Hill (NSW)

8. Broadbeach (Queensland)

9. South Melbourne (Victoria

10. Adelaide (South Australia)

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