Four Sydney suburbs top RiskWise’s list of the top 100 most risky suburbs to invest in.

The consultancy analysed over 3,000 suburbs based on five main factors:

  • Poor economic growth
  • Oversupply and high proportions of new units 
  • Houses vs. units
  • Middle-ring units vs. inner-ring units
  • Renter ratio

The top 10 are as follows:

table.pngInformation sourced from RiskWise Property Review

According to RiskWise, the widespread oversupply issue is universally acknowledged by banks, including the Reserve Bank of Australia, who have all compiled ‘blacklists’ for postcodes that are suffering from potential unit saturation. Despite this however, more than 315,000 units have been approved for construction across Australia over the next two years, many of which are in these blacklisted postcodes.

“If we look at the top 10, it’s no surprise to see several city centres listed – particularly Brisbane, which features prominently on lenderds’ blacklists,” says RiskWise.

“In 2017, more than 5300 units were completed in Brisbane, with another 11,000 in construction. What we’re currently seeing on the market is a lot of incentivized advertising, from offers of full furnishings included to a free car on settlement.

“Taking out the number one spot is Zetland, a former industrial zone 4km south of Sydney’s CBD. Now in an advanced stage of gentrification as part of an urban renewal project, the residential development of choice has been high-density units and apartments, with more than 5,000 new units in the pipeline across Zetland and neighbouring Waterloo since 2016.”