The real estate downturn is providing an opportunity for those counter-cyclical investors who like to avoid buying when prices are booming.

The official cash rate continues to climb and comments from the Reserve Bank governor Philip Lowe suggest that won’t change any time soon.

BuyersBuyers co-founder Pete Wargent said these rising interest rates will slow housing market activity, and were something younger borrowers have never experienced before.

“Our best estimate is that the property market downturn will continue for as long as borrowers fear rising mortgage rates, led by Sydney and Melbourne, and this is likely to mean for at least the remainder of 2022,” he told The Property Tribune.

“The flip side to this is that the underlying housing market fundamentals are strengthening, with immigration visas set to be fast-tracked to address Australia’s skills shortage, the lowest unemployment rate in 50 years, and incomes now rising.”

COVID restrictions and lockdowns saw many people head off for a different lifestyle in the regions or interstate and Mr Wargent said it presents an opportunity for investors.

“The relative underperformance of the Melbourne market means that there are some attractive deals on offer for counter-cyclical investors in suburban houses,” he said.

“Some counter-cyclical investors are also now looking at investment grade units in Melbourne, after a decade of underperformance, particularly where they can find assets with a point of security.”

BuyersBuyers have put together a list of their best 10 suburbs for investors to target right now while property is on the downturn:

Melbourne Top Suburb Picks, Houses

Melbourne Top Suburb Picks, Units