Declining property prices, rising vacancy rates and easing rents are indicative of oversupply in parts of Sydney and Melbourne, a new report has revealed.
A recent analysis of housing supply across capital cities, conducted by national property market research firm and buyers agency Propertyology, has identified a number of areas that are likely to underperform across the next three years.
Residential construction has been on steroids in Sydney and Melbourne over the past few years, Propertyology’s Simon Pressley says, and due to this a number of areas will bear the brunt more than others.
“Analysis of building approval volumes at a granular level provides insight into individual municipalities where property values and rents, primarily apartments, are likely to soften most,” Pressley said.
In the harbour city, the report identifies suburbs Rockdale and Sutherland in Sydney’s east; Canterbury and Liverpool in Sydney’s south; Ryde, Hornsby and The Hills to the north; Blacktown and Parramatta in Sydney’s west; and the inner west’s Botany Bay, Leichhardt and Marrickville, along with outer south-west suburb Camden.