Are you planning on investing in a duplex in one of Australia’s suburbs? Well, this post shares with you high supply suburbs you want to avoid for a duplex build.
For the past decade now, Australia’s property market has been a safe haven for many duplex build investors. With its new phase of falling property price, slow growth as well as oversupply, however, it is important that investors pay close attention to where they should avoid and where they should go for a duplex build investment.
It is with this that we’ve opted to share with you this duplex build post. Below you’ll find details on 10 high supply suburbs you want to avoid for a duplex build. It is our hope that this information will help investors that are yet to secure a duplex build investment in Australia make the right choice.
Top on the list of high supply suburbs you want to avoid for a duplex build is Newstead, Queensland. This up and coming suburb just 3km north of Brisbane’s CBD has a yearly growth in the number of new units. In fact, the whole of Brisbane (where Newstead is) is said to have added more than 9000 units last year. This, as expected, has led to Brisbane having an oversupply of units especially with inner-city suburbs like Newstead.
In addition to an oversupply of units, there is also a stall in price growth of units in suburbs in Brisbane like Newstead. This is mainly due to investors opting to sell out their existing projects. To top it all off Newstead currently has slow sales time.
Bentley, Western Australia
Bentley is another suburb in Australia you should avoid for a duplex build. Why? Well, there are two reasons for this. One, it has an oversupply of units. Secondly, unit prices are dropping fast on a yearly basis. Number wise, vendors in Bentley slashed about 10% off their unit’s initial selling price. Furthermore, buyers demand in this Western Australian suburb is very weak.
Haymarket, New South Wales
This affluent growing suburb in New South Wales has a high supply of units making it one to avoid for a duplex build. In the year 2017-2018, unit numbers in this New South Wales suburb were up 44.8%. Even with an increase in demand, the supply still remains high. With this, there has also been a drop in prices of units in this suburb. Similar to Bentley, vendors in Haymarket are forced to slash 10% of the unit’s initial selling price.
Jordan Springs, New South Wales
With Jordan Springs, the past five years has seen a steady increase in the price of median properties. While this might be good news to just about any investor thinking of a duplex build in this suburb is not recommended. Why so? Well, like the other suburbs in this list, Jordan Springs has a high supply of units. With this high supply, property prices have started to show some depreciation. In addition, the time it takes to sell a unit is also on the rise.
South Perth, Western Australia
This riverside suburb is also among those with an oversupply of units. Similar to other suburbs, the oversupply has resulted in a number of negatives. For instance, it has resulted in relative long or slow sales time for units. These negatives put together make South Perth a suburb you want to avoid for a duplex build.
Key to note as an investor is that the median price of units in the last quarter in South Perth increased by -2.26%. In addition, it currently has a high number of vendors offering discounted properties.
Meadowbank, New South Wales
Known to have greatly benefitted from Sydney’s price boom, Meadowbank is a suburb you want to avoid for a duplex invest. In addition to having a decline in demand, it currently has a huge oversupply issue. With its breathtaking waterfront, investors invested in high-rise developments to fully capitalize on their investments. This interest in high-rise development has significantly increased the number of units in the suburb.
Macquarie Park, New South Wales
With Macquarie Park, there are a few things you should know before investing in a duplex build. One is the high number of units available in this suburb. What this does is basically create an imbalance of supply and demand. With high supply and low demand, property prices are on the decline.
Furthermore, vendors are forced to offer discounts so as to sell their units fast. Two, despite this suburb increase in median prices in the last three years, the figure is considered low when compared to past years figures
Marsden Park, New South Wales
Newly built detached units dominate the Marsden Park property market. With a high number of these properties, it’s no surprise that this NSW suburb has a high supply of units. With demand low and supply high, the average time units stay in the market has significantly increased. In addition, vendors are forced to offer huge discounts on their units.
Harris Park, New South Wales
With Harris Park, there are two things working against any investor who chooses to invest in a duplex build. One is the fact that it has a very high number of units. With this New South Wales suburb, the supply of housing or units is well above demand. To make matters even worse is the fact that demand has been falling steadily in the last couple of years. Furthermore, experts warn that this trend is going to continue in the coming years as well.
Riverstone, New South Wales
If you were to compare the increase in the value of property investment in Riverstone and other areas in the country, it’s clear that it ranks poorly. Currently, investor’s return in this New South Wales suburb is worse than it was 12 months ago. Even worse, vendors are now offering a huge discount to buyers. All these negatives are as a result of the suburb’s oversupply in unit numbers. It is with this that investors should avoid it for a duplex build.
For added information on all things duplex build do contact Duplex Invest. Our team of experts will offer you great and advice and help on how to go about investing in duplexes.