The worst performing suburbs of 2018 revealed
New data has revealed the suburbs that experienced the highest negative growth over 2018.
A report by Suburbanite has identified the areas that experienced the highest levels of negative growth over the course of 2018.
Director of Suburbanite Anna Porter said the data was collected in order to combat against negative growth traps from suspicious individuals.
“Each year, there are suburbs that are enlisted in the negative growth report that a number of investment firms still pitch to clients (often incentivised by hefty kickbacks),” she said.
NSW saw a large jump in negative price growth suburbs, moving from 12 suburbs for negative housing growth and 16 suburbs for negative unit growth in 2017 to 188 suburbs for house suburbs and 153 for unit suburbs, respectively, in 2018.
By comparison, Victoria saw 165 house suburbs and 77 unit suburbs recording negative growth, and Queensland had 205 house suburbs and 145 unit suburbs.
Explaining the jump in NSW, Ms Porter said the housing market experienced a period of growth between 2012 and 2016, then started to cool in areas in 2017 which continued through to recently.
“For those that have owned properties in the suburbs of Sydney, Wollongong or Central Coast over the past 3-4 years you have just about won the property lotto, so a small correction will not have much of an impact on the overall outcome,” she said.
“The broader market saw further impact of the cooling effect in the latter part of 2017 and 2018 and we expect the 12 months of 2019 to be a far more grim picture for the market with the negative growth trend spreading further though-out the state.
“Having said this though, our historical research shows a trend of typically only 5 per cent to 10 per cent decline in values for most suburban and metro areas when the market hits this stage of the cycle.”
The larger impact, according to Ms Porter, was felt in the more luxury suburbs.
“The prestige market will still see some activity with the high capacity buyers who have been sitting on the side lines for the past few years waiting for the tide to turn,” Ms Porter said.
“They will start to get back in the mix of the market but they will be wanting good buying power. These buyers will not be paying the premiums of years gone by but we also don’t expect to see too much price discounting happening across the board in this sector.
“A unique, quality prestige property will still sell well, it will just take more time to find the right buyer.”
“For the smashed avocado generation trying to get into the property market, the good news is that the buying power is set to return to the market over 2019 and for a few years to come."
The surburbs that experienced the highest negative growth for houses and units, according to Suburbanite data, are:
|
State or Territory |
House suburb
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|
House price growth |
Unit suburb |
Unit price growth |
|
NSW |
Church Point |
-25.3% |
Mangerton |
-43.9% |
|
Victoria |
St Kilda |
-28.7% |
Aberfeldie |
-35.8% |
|
Queensland |
Sunset |
-27.9% |
Beachmere |
-49.8% |
|
Western Australia |
Kambalda |
-35.9% |
West Busselton |
-31.6% |
|
South Australia |
Port Macdonnell |
-22.8% |
Allenby Gardens |
-28.7% |
|
Tasmania |
Shorewell Park |
-26.9% |
East Launceston |
-14.2% |
|
Northern Territory |
Bakewell |
-19.8% |
Nightcliff |
-32.2% |
|
ACT |
Mawson |
-8.7% |
Phillip |
-26.4%
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