Top 10 suburbs to avoid when buying off-the-plan in 2018

If you’re thinking of buying a property off-the-plan, you have to be extremely confident of the suburb it’s in. One business has located the most recent top 10 worst possible suburbs to commit such a purchase.

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Research company RiskWise Property Review has updated its top 10 suburbs to avoid for investors considering investing off-the-plan.

Analysing over 3,000 suburbs, the company has released the top 10 suburbs from their “Danger Zone” list for 2018, determined from RiskWise’s algorithms and tools.

According to RiskWise, the top 10 worst suburbs for purchasing off-the-plan are:

Rank State Suburb Post code New units in the next 24 months Percentage of new units
1 NSW Zetland 2017 2332 39.8%
2 NSW Epping 2121 2460 42.0%
3 NSW Holroyd 2142 3184 853.6%
4 NSW Schofields 2762 1389 754.9%
5 QLD Brisbane City 4000 3201 38.5%
6 QLD Fortitude Valley 4006 1040 23.6%
7 QLD South Brisbane 4101 2145 49.7%
8 SA Adelaide 5000 1720 20.1%
9 VIC Southbank 3006 2212 12.5%
10 WA Perth 6000 1151 13.7%

Doron Peleg, CEO of RiskWise, mentioned the appearance of several city centres in the list was not surprising, with Brisbane the highest ranking city centre this year and allegedly blacklisted by lenders.


“In 2017, over 5,300 units were completed in Brisbane, with another 11,000 in construction,” Mr Peleg said.

“What we’re currently seeing on the market is a lot of incentivised advertising, from offers of full furnishings included, through to a free car on settlement.”

Zetland was ranked number one in this revised ranking. The area, located four kilometres south of Sydney’s CBD, is currently in an advanced stage of gentrification with high density units and apartments, has an influx of over 5,000 new units being introduced to the area and nearby Waterloo.

“We would advise any investors looking at off-the-plan purchases to know what to look for and the degree of risk involved,” Mr Peleg said.

“Buyers should arm themselves with an in-depth analysis on the suburb’s ability to absorb the new unit supply, and the potential impact on future capital gains.”

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