Gosford has ranked second in a list of the top 10 “danger zone suburbs” in the Greater Sydney area where there is an over-supply of apartments and investors have been warned to be wary of rental vacancies and capital losses.
Co-founder of Australia’s first national property buyer’s agency network BuyersBuyers, Pete Wargent, said there had been a “race for space” over the past 18 months, sending house prices higher, but unit prices in some high-supply areas look riskier.
“Although demand has dropped sharply given the absence of international students and other visitors, there are still some areas with a high volume of potential new units in the pipeline over the next couple of years,” he said.
“The danger areas aren’t limited to the CBD but are rather found where there are clusters of new developments.”
Founder of RiskWise Property Research, Doron Peleg, said that unit supply was a factor landlords needed to be wary of.
“We have compiled our top 10 danger zone suburbs in Sydney and Melbourne where investors should be wary about the risk of rental vacancies, and capital loss, particularly investors considering new or off-the-plan purchases,” he said.
“The CBD areas of the capital cities have been a risk area for some time, but in Sydney, the risks are spread quite broadly across the city, from Liverpool to the inner-south and Zetland, and up to parts of the Central Coast, such as Gosford.”
Gosford, with 1,619 new units in the pipeline over the next 18 months, came second only to Schofields, with 3,397 units planned.
Other suburbs on the list included Rouse Hill, Zetland, Liverpool, Epping and Burwood.
Verified source: Media release, October 2021 BuyersBuyers
good news for renters and buyers. Prices to go down as supply finally meets demand.