Real estate experts

Looking to buy real estate? Avoid units in these postcodes

PHOTO: Holiday apartments in Queensland. Credit: DAVE HUNT/AAPIMAGE

Real estate experts have issued a warning over purchasing off-the-plan units in 10 Australian suburbs, saying the risk of financial loss is high.

According to RiskWise, anyone who buys a unit in one of the suburbs should be aware the price of the unit could fall after purchase.

For investors, buying in these suburbs also comes with a risk of high vacancy rates and low cash flow.

“The equity risk, being the risk for price reduction that already had been high prior to the COVID-19, has further increased as investor activity is lower, and their awareness of the risks associated with rental apartments has increased,” Risk Wise said in a website post for property investors.

Rental returns have significantly reduced during COVID-19, with Sydney and Melbourne the hardest-hit cities.

The 10 high-risk suburbs

  • Melbourne, Victoria, 3000
  • Docklands, Victoria, 3008
  • Mascot, NSW, 2020
  • Rouse Hill, NSW, 2155
  • Parramatta, NSW, 2150
  • Gosford, NSW 2250
  • Darwin, NT, 800
  • West End, Qld, 4101
  • Surfers Paradise, Qld, 4217
  • Adelaide, SA, 5000