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The 5 worst Australian property markets in each state

(Photo: Getty)
(Photo: Getty)

We’re well in the midst of a property downturn, but the worst is yet to come.

Why? Inflation.

New research has revealed the locations across Australia where property prices will not even be able to keep up with inflation over the next three years.

The analysis by found that one in seven property markets in Australia will likely have negative capital growth between now and 2022.

“The research showed that nearly 860 markets in the nation are on track to post price falls over the next three years, with a mix of capital city and regional suburbs in the results, and with oversupply being just one part of the story,” head of research Jeremy Sheppard said.

He adds that dwellings in these markets aren’t even worth holding for growth reasons.

“They will be worth less than they are today in real dollar terms, which means that some people might be better off to sell so they can take advantage of opportunities in other markets,” Shepard said.

Which areas will bear the brunt?

Western Australia’s property market will see the worst of it, with a whopping 40 per cent predicted to suffer negative growth, closely followed by the Northern Territory with 39 per cent of its market under stress.

Property markets in Queensland and New South Wales are also set to see negative growth – this is expected to account for 17.6 per cent and 13.2 per cent of their markets respectively.

The dwelling type and suburb tipped to fall the most in price were houses in Blackwater in western Queensland with prices predicted to drop by 5.2 per cent.

While a number of mining locations like Blackwater made an appearance, so, too, did capital city suburbs, Sheppard said.

“In fact, houses in Vineyard in the Blacktown region of Sydney were the second worst market, according to the research, with prices forecast to reduce by 3.7 per cent over a three-year period, which is a long time to wait, especially while other markets will be cracking along,” he said.

“Houses in Leppington and units in Villawood, both in Sydney, are also expected to
fall in price over the next three years.”

Bottom five property markets revealed

Here are the bottom five property markets in each Aussie state, according to

Australian Capital Territory


New South Wales


Northern Territory




South Australia






Western Australia


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