The bottom 5 suburbs in every state and territory revealed for the next 3 years

Head of research at Sell or Hold Jeremy Sheppard said that almost 860 markets were on track see that negative growth, from both capital city and regional suburbs.

“While every owner or investor needs to understand their unique financial circumstances before making a decision about whether to sell or hold, this data shows us that blindly waiting for a market upturn might not be the smartest financial decision,” Mr Sheppard said.

Out of the data, Western Australia saw the largest share, with 40 per cent of its suburbs classified as ‘bad, followed by the Northern Territory’s 39 per cent, then Queensland’s 17.6 per cent and then NSW’s 13.2 per cent

“We chose the baseline comparison against inflation to show that dwellings in these markets aren’t worth holding for growth reasons because they will be worth less than they are today in real dollar terms, which means that some people might be better off to sell so they can take advantage of opportunities in other markets,” Mr Sheppard said.

“While the data projected price falls in specific dwellings in these locations, conversely there are literally hundreds of other markets where prices are set to soar over the same time period.”

Where are the top suburbs to avoid?

Stemming from the overall research, five suburbs from each state and territory were identified as having the largest negative growth over the three-year period.

Topping the list was Queensland’s Blackwater, which was expected to see declines of 5.2 per cent.

Not only were mining locations like Blackwater featured, but capital city suburbs found their way on the list as well.

“In fact, houses in Vineyard in the Blacktown region of Sydney were the second worst market, according to the research, with prices forecast to reduce by 3.7 per cent over a three-year period, which is a long time to wait, especially while other markets will be cracking along,” he said.

“Houses in Leppington and units in Villawood, both in Sydney, are also expected to fall in price over the next three years.

“I know it’s not popular to predict bad property markets, but at the end of the day, property owners and investors must be aware that there are some markets that will languish for years so it may be futile holding on for better days.”

The bottom five property markets in every state and territory, according to Sell or Hold, are:

This data follows previously published research by Suburbanite, which analysed suburbs over the last year to determine which suburbs had the largest amount of negative growth.