There are 66 "dangerous suburbs" in Australia that buyers and investors should avoid at all costs.
These "dangerous suburbs" include markets for crowded units in large cities such as Sydney, Melbourne and Brisbane, to regional cities in Queensland and the Northern Territory.
The red flags are obvious, according to Hotspotting who uses the sales volumes to predict the movements of future prices.
Of the 66 "danger suburbs", 17 are in New South Wales, 26 in Queensland and 10 in the Northern Territory.
Out of the 66 "danger suburbs", 17 are in New South Wales, 26 in Queensland (pictured, Hamilton) and 10 in the Northern Territory.
These "dangerous suburbs" include markets for crowded units in big cities like Sydney (pictured), Melbourne and Brisbane
At the smallest end of the scale, Victoria only has seven of the 66, while Western Australia and Tasmania have three each.
South Australia and the Australian Capital Territory have none on the surprising list of suburbs.
The report indicates strong concentrations of dangerous suburbs in the central business district of Sydney, Parramatta, Brisbane and the inner cities of Melbourne and the regional towns of Mount Isa and Gladstone in Queensland.
Hotspotting managing director Terry Ryder told news.com.au that the two best places to avoid are the Sydney apartment market and the apartment market just outside of Brisbane.
He also said that Sydney's difficult future was clear years ago, long before prices became a problem.
"Sydney reached a maximum in terms of sales volumes in 2015 and has been gradually reduced, it was only last year that we began to see it reflected in the price data," he said.
As developers are investing heavily in the apartment market, the increase in supply coincides with the fall in demand from buyers, which means that the CBD apartment market is likely to be in the next few years.
The report indicates strong concentrations of dangerous suburbs in the central business district of Sydney, Parramatta, Brisbane (pictured) and the inner cities of Melbourne.
Although things are looking bad for two of the largest cities on the east coast of Australia, Western Australia is improving.
There are no longer many dangerous suburbs in Perth, with many of the suburbs showing signs of strong recovery and elevation.
Adelaide did not appear on the list of dangerous suburbs, with Ryder saying it was a "very promising" and underestimated market that is expected to grow in five years.
For those looking to buy a property, the data has identified the 66 suburbs in Australia that buyers should not approach, including Kalgoorlie (pictured) in Western Australia.
SUBURBAL PROPERTY VALUE OF HIGHEST DANGER IN EACH STATE
Hamilton – $ 1.3 million (Home), $ 495,000 (Unit)
NEW SOUTH WALES
Epping – $ 1.81 million (House), $ 850,000 (Unit)
Hawthorn East – $ 2.43 million (House), $ 605,000 (Unit)
THE WEST OF AUSTRALIA
Kalgoorlie – $ 305,000 (Home)
Muirhead – $ 650,000 (Home)
Zeehan – $ 82,000 (Home)
South Australia and the Australian Capital Territory escaped without slums on the list.
Source: Hotspotting Price Predictor Index Winter 2018
"South Africa's economy is quite strong, much better than people think, and it's improving all the time, its real estate market is very solid, it's good value for money, rental rates are much better than larger cities. ", He said.
Ryder also said that Canberra is a rising market, as its rental prices have increased, which is a sign of rising prices.
He said the biggest change in general was the surprising growth in regional NSW and Victoria.
Buyers and investors are looking for regional parts of the state, since prices are often cheaper than overpriced cities.
"When the capital city has a large real estate boom, it levels up the regions with a time lag It's not unusual for Sydney and Melbourne to relax to see regional cities like Newcastle and Geelong very strong because of the domino effect," he said.
Housing prices in Australia have recently fallen to the fastest annual rate since 2012, according to published data by the property research firm CoreLogic.
This rapid decline means that housing prices are now 1.9% below their peak in September 2017.