Australia’s most overvalued and undervalued suburbs revealed

Swathes of the Australia’s property market have become “overvalued”, with some suburbs now dangerously exposed to price falls as buyer demand weakens and listings pile up, new figures show. Many of these overvalued suburbs were prominent areas of Melbourne, Adelaide, Brisbane and Sydney that had grown strongly in previous years. But it’s not all doom and gloom: the same analysis reveals there are still pockets where homes are “undervalued”. These undervalued markets are where prices are likely sitting below where they should be, offering buyers and investors a rare chance to get in before values lift. The findings from analytics group SuburbData draw a sharp line between suburbs where prices have run too hard, too fast — and those where value still remains. Auction clearance rates have hit dramatic lows across Sydney and Melbourne in recent weeks. Picture: Lyndon Mechielsen An overvalued suburb, the research explained, isn’t simply one with an eye-watering median price. Instead, a suburb tips into overvalued territory when years of aggressive capital growth push prices beyond what local supply and demand can support. SuburbData analyst Jeremy Sheppard said the danger for recent buy...