36 Australian no-go suburbs for property investors revealed | Hotspotting

The country’s metropolitan and regional areas that property investors should avoid have been revealed in the latest research by Hotspotting. SEE WHERE.

This three-bedroom house at 72 Lawrie Drive, Collingwood Park is currently up for sale.

Aussie property investors have been warned off dozens of suburbs poised to take a market hit in 2025.

New research from real estate research firm Hotspotting revealed 36 areas in the nation’s metro areas and 14 regions spots with falling sales activity that hints they have passed their peak.

Hotspotting founder Terry Ryder said the vast majority of the Australia’s declining markets were in Western Australia.

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Mr Ryder said the state led the nation with the biggest price growth in the past couple of years.

“(But) the peak has been passed in that market … so you need to be thinking carefully, if you’re thinking, as an investor in particular, jumping into the Perth market now,” he said.

In Western Australia, there were 29 suburbs with decreasing sales activity including South Perth, Golden Bay and Atwell.

Property investors looking to buy a house in urban New South Wales and Victoria should give a wide berth to Carlingford, Engadine, Lidcombe and Vaucluse — as well as Abbotsford, Cranbourne East, Croydon and Oakleigh South.

6 Lawler St, South Perth is listed for sale, understood to have around $1.5m-$2m price expectations.

South Perth’s median house price at $1.8m, according to PropTrack.

And in regional markets — East Lismore, North Lismore, South Lismore, Griffith and Mittagong in New South Wales should be avoided, while in Queensland areas including Centenary Heights and Zilzie are on the list.

Mr Ryder said Vaucluse — one of the Sydney’s wealthiest suburbs — and the Lismore region had experienced declining sales activity since September 2023.

“(It) is not surprising given that location (Lismore) has been devastated by floods a couple of times in recent years,” he said.

“That’s really bad news for people who own homes in that area.”

However, he said the nation’s property market was particularly resilient to major weather events as it was the “land of the natural disaster, it’s part of Australia”.

Mr Ryder added that Melbourne’s real estate market had remained “stuck in neutral” over the last couple of years with no impetus to drive prices higher with high property taxes.

“Investors are more likely to be selling than buying in Victoria,” he said.

Willaston in South Australia and Collingwood Park and Wishart in Queensland should also be avoided for those looking to purchase a house, according to Hotspotting research.

This five-bedroom house at 23 Captain Pipers Rd, Vaucluse is listed for sale, understood to have more than $5m price expectations.

PropTrack research shows Vaucluse’s median house price is $8.6m.

And for prospective buyers after a unit, Arncliffe in New South Wales, Murrumbeena in Victoria and Chermside in Queensland are spots to potentially skip.

Real Estate Institute of Australia president Leanne Pilkington said a lack of affordability and high interest rates typically led to declining sales activity.

“(Housing) is becoming really unaffordable. There’s a lot of uncertainty with interest rates. We’re hoping they’re going to start coming down again fairly soon,” Ms Pilkington said.

“But all last year, we kept hearing (interest rates) were coming down and nothing happened, so that leads to a lack of confidence.

“When people have a lack of confidence, they just don’t transact.”

11 Coombs Ave, Oakleigh South, is listed for sale with a $1.22m-$1.29 price guide.

Oakleigh South’s median house price is $1.245m, according to PropTrack.

She said a couple of interest rate cuts in a row in 2025 could put some fire back into the market.

“When there’s high demand and low prices, prices go up,” she said.

“If interest rates fuel demand, it’s going to be interesting to see the impact across the country.”

AUSTRALIA’S NO-GO SUBURBS FOR PROPERTY INVESTORS – METRO

State – Dwelling Type/Market

Victoria

Abbotsford – House

Cranbourne East – House

Croydon – House

Oakleigh South – House

Murrumbeena – Unit

New South Wales

Carlingford – House

Engadine – House

Lidcombe – House

Vaucluse – House

Arncliffe – Unit

Queensland

Collingwood Park – House

Wishart – House

Chermside – Unit

South Australia

Willaston – House

Western Australia

Atwell – House

Baldivis – House

Balga – House

Beeliar – House

Dianella – House

Golden Bay – House

Gosnells – House

Hamilton Hill – House

Harrisdale – House

Kewdale – House

Mosman Park – House

Rivervale – House

Secret Harbour – House

Thornlie – House

Tuart Hill – House

Bentley – House

Melville – House

Midland – House

Noranda – House

Joondalup – Unit

Scarborough – Unit

South Perth – Unit

AUSTRALIA’S NO-GO SUBURBS FOR PROPERTY INVESTORS – REGIONAL

State – Dwelling Type/Market

New South Wales

East Lismore – House

Griffith – House

Mittagong – House

North Lismore – House

South Lismore – House

Queensland

Centenary Heights – House

Zilzie – House

Western Australia

Australind – House

Dunsborough – House

Falcon – House

Lakelands – House

Pinjarra – House

Port Hedland – House

Atwell – Unit

Source: Hotspotting

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Originally published as 36 Australian no-go suburbs for property investors revealed | Hotspotting