Don’t buy here: Queensland’s property no-go zones revealed

A “no go zones” report for investors has revealed multiple Queensland suburbs where an oversupply of properties has squashed rents, driven up vacancies and sent prices into a downward spiral. Here are 11 of the worst.

Mining towns like Moura have been flagged as no-go zones for property investors in a new report. Photographer: Jodie Richter.

TOWNS dependent on mining or with a glut of apartments have been flagged as the worst markets for investors to buy property across Queensland.

A “No go zones” report for investors revealed multiple pockets where an oversupply of properties relative to buyer demand has squashed rents, driven up vacancies and sent prices into a downward spiral.

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A coal mine near Moura, which has been identified as one of the worst places to invest in property. Photographer: Jodie Richter.

The most notable markets ranked among the 20 worst locations in Australia were towns heavily reliant on the resources sector, especially coal mining, according to the analysis of CoreLogic, ABS and SQM Research data by Positive Property Solution.

They included the Queensland towns Moranbah, Blackwater, Moura and Emerald, with central Rockhampton – a popular market for FIFO workers – also flagged as “risky” due to an oversupply of units.

Moranbah is on the list of no-go zones for property investors in 2021. Picture: Rae Wilson.

Positive Property director George Markoski said a common theme among the most risky markets was an oversupply of properties, usually units.

Mr Markoski said mining towns were particularly risky markets because they often had short periods of incredible price growth that attracted investors.

This Rockhampton property at 46 Corberry Street, The Range, sold for $1.03m. Rockhampton has been identified as risky for property investors.

“The problem with boom towns, and there is a similar thing with touristy places, is that when rents and prices suddenly shoot up, developers get excited,” Mr Markoski said. “They jump on the bandwagon and they build so much it destroys the areas.

“If you’ve bought there, it becomes very hard to sell (or get a tenant).”

Queensland towns heavily reliant on the resources sector — especially coal mining — hae been identified as ‘risky’ for property investors in new analysis. Photo: Karol Gawlick.

WORST SUBURBS TO BUY PROPERTY IN QLD

Moura

Longreach

Innisfail

Ingham

Blackwater

Moranbah

East Innisfail

Rockhampton City

Forrest Beach

Tumby Bay

Emerald

(Source: Positive Property Solutions)

Originally published as Don’t buy here: Queensland’s property no-go zones revealed