Sydney’s most ‘overvalued’ and ‘undervalued’ suburbs revealed

Sydney’s property slump is turning savage in some suburbs, with “overvalued” prices now at risk of even steeper falls, while other areas have become “undervalued” and primed for a rebound. New research from property analytics firm SuburbData reveals home prices in many of the suburbs that boomed over previous years have now overshot similar, neighbouring areas by up to $250,000. The research indicated the high discrepancy between prices in these areas and neighbouring suburbs offering similar, cheaper housing and amenities has made current prices unsustainable. The expected result is punishing drops in home values that could wipe out hundreds of thousands of dollars in house values as the current market downturn intensifies. MORE: Sad truth behind RBA plans for Aussies Sydney auction clearance rates have dropped considerably over recent weeks. Picture: Sarah Wilson MORE: Inflation bombshell shows rate hikes backfiring It follows PropTrack figures released last week that showed house values dropped in 91 per cent of Sydney suburbs over the July quarter. There were about 400 suburbs that recorded a median drop greater than $50,000, including about 200 suburbs where the drop was over ...