Where property prices have peaked in Australia

A new report has highlighted the no-go zones for property investment around the country.

Created by Suburb Data’s Jeremy Sheppard, this report highlights the areas where buyers are most at risk of overpaying due to the fact that their prices have either peaked or are peaking.

And the report seems to have the biggest implications for first homebuyers, Mr Sheppard says, with prices in our more affordable hotspots now having risen to the point where sellers risk not making back on resale what they paid for them.

Jeremy Sheppard of SuburbData. Supplied

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If you’re looking to buy, you’ll want to read these stories first.

So, without further ado, here’s what the data showed for our major cities.

SYDNEY

Sydney suburbs that became an affordable refuge for home seekers after interest rate hikes in 2022 and 2023 are now some of the areas where new buyers are at risk of overpaying for their properties.

New analysis has revealed prices are showing signs of peaking in multiple markets after prolonged rises.

This has raised the danger that what home seekers pay today will be higher than the value of their homes down the line.

House prices are falling in some areas across Sydney, representing risky buying conditions. Photo: Getty Images

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Areas deemed to be peaking, where the risk of overpaying for houses was higher, included western suburbs Macquarie Fields, Blacktown and Bossley Park, according to Suburb Data research.

There were also a cluster of peaking suburbs around the Mount Druitt area, including Bungarribee, Willmot, Emerton and Werrington County.

Asquith and Mount Kuring-Gai, which are among the north shore’s cheapest suburbs, were also peaking.

Read the full story here

ADELAIDE

They’ve been the value growth darlings of the state’s property market ever since the pandemic, but a report is warning buyers against purchasing in one popular region.

Research group Suburb Data’s latest release issues a warning to househunters looking at buying in Adelaide’s northern suburbs, suggesting prices may be peaking in this area, and buyers are at risk of overpaying.

Elizabeth South houses, with a current median value of $477,225, were named the state’s riskiest properties to buy, ahead of houses in Elizabeth Park, Gawler South, Munno Para, Elizabeth Downs and Elizabeth East.

House prices are tipped to fall across a number of SA suburbs. But one local expert doesn’t think so. Picture: Ben Clark

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Rosewater, Glandore, Seacombe Heights and Elizabeth Grove houses rounded out the top 10.

But, as a local expert – who has sold 246 homes in Adelaide’s north in the past 12 months – says, this report should be taken with a pinch of salt.

Read the full story here

BRISBANE

First-home buyers flocking to some of Brisbane’s most affordable suburbs risk being trapped by plummeting property values, with rapid growth in these areas sounding the alarm for a looming market correction.

Exclusive data has revealed the city’s top 20 property hotspots where buyers are most at risk of overpaying, including the entry-level markets of Woodridge, Crestmead, Gailes, Ipswich, Leichhardt, Deception Bay, and Inala.

Some popular inner-city suburbs may also be in line for price falls, such as Wilston, just north of the CBD, with a median house value of $1.8m.

Brisbane homes were not immune from price drops. Picture: Supplied

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Inflated prices in these suburbs, which range in median from under $400,000 to just shy of $2m, indicate the market is at the peak of its cycle, new research by Suburb Data found.

Woodridge on Brisbane’s southern fringe ranked as most overvalued for both houses and units, priced at $605,572 and $384,341 respectively.

The suburb has been in high demand, attracting both owner-occupiers and investors drawn by strong rental yields, but a low market cycle timing score of 13 out of 100 suggests the recent price surge could be losing momentum, according to Suburb Data analyst Jeremy Sheppard.

Read the full story here

MELBOURNE

Keep an eye out for this story this weekend.