It's official - Leppington has been declared as one of Australia's worst property markets.
Just last year the semi-rural area bordering Camden Valley Way was highlighted as one of Sydney's booming real estate markets.
Now however real estate research website sellorhold.com.au has ranked the suburb as the second worst property market in NSW.
Its research shows Leppington is likely to experience negative capital growth between now and 2022, dropping one per cent off its current median value of $891,000.
Sell Or Hold head of research Jeremy Sheppard said the research was compiled using 17 different market trend indicators.
"We look at things like vacancy rates, supply and demand ratios and some other fancier ones," he said. "We've been compiling these lists over the past 10 years."
Eighteen months ago Leppington was expected to become the darling of Sydney property investors with chief executive of popular real estate group Starr Partners, Douglas Driscoll saying then it showed the most real estate potential of any suburb for 2018.
“Leppington has seen significant housing development after rezoning and is very family-centric,” he told the Advertiser at the time.
Since then however the growing suburb has fallen from grace.
Mr Sheppard said the past year had been rough for Leppington.
"It is only recently that the market in that suburb has gone pear-shaped," he said.
"There has been a 50 per cent increase in selling times and in markets where supply exceeds demand prices will drop.
"The typical discount on houses is 10 per cent but Leppington has exceeded that."
Mr Sheppard said the Banking Royal Commission credit crunch had made it more difficult for people to get home loans, and as a result many houses in Leppington were empty despite a spike in people looking at properties.
He said Leppington's development potential could have ongoing negative effects on its capital growth.
"There is enormous potential for developers to go nuts and create an over-supply of housing but it is hard to say which way it will go," Mr Sheppard said.
"Supply is the enemy of capital growth."
Mr Sheppard said Leppington homeowners looking to sell should take the risk so long as they can afford to deal with the potential of having negative equity.