Capital city suburbs facing repeated price collapses

Volatile suburban “repeat offenders” – the capital city areas that suffer the most devastating home price collapses each time a property downturn strikes – have been exposed in a new study. The research provides a blueprint of how the current market downturn might play out and which capital city areas may be worst affected. The exclusive report by analytics group FoundIt revealed several premium and mortgage-belt suburbs across the country are prone to sudden, double-digit drops in home values. Perth was reported to have the bulk of the most volatile markets, but there were also parts of inner Melbourne, outer Sydney and Darwin that were more prone to wild downward swings in prices. Brisbane and Adelaide, by comparison, had fewer suburbs with a history of substantial price falls during multiple downturns. The study tracked house medians across three major slumps – the 2011–12 post-GFC downturn, the 2017–19 credit squeeze, and the 2022–23 correction that occurred when interest rates were hiked 13 times. FoundIt head of research Kent Lardner headshot – for herald sun real estate MORE: Aussies put on notice for X-rated WFH act Report author Kent Lardner, a data scientist and pioneer i...