Top five ‘distressed sales’ locations revealed
The regions with the highest percentage of distressed sales have been uncovered in a new report, with the top five all hailing from one state.
SQM Research’s new Distressed Properties Report revealed that despite buoyant market conditions across many parts of the country, 11,437 properties are currently selling under distress. This represents 3.3 per cent of total current listings, or stock on market.
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The region with the largest amount of distressed conditions is the "Gold Coast Main" with 14.6 per cent of its market in distress. In addition, the top five regions in the country with the highest percentage of distressed listings are all in south east Queensland.
Queensland is also the state with the highest percentage of distressed listings, at 6.5 per cent of the market. This is well ahead of the Northern Territory on three per cent, which placed second on the list.
SQM Research managing director Louis Christopher said south east Queensland’s relatively poor performance could be tied to investors in financial strife.
“Coincidentally, south east Queensland is the region that has the highest proportion of investment properties to total homes,” he said. “The link may well be coincidental, but I suspect those who get themselves into financial trouble will tend to sell off the investment property first before their principal place of residence.”
SQM Research defines a distressed listing as a property being offered for sale under any of the following conditions: mortgagee in possession/bank forced sale or liquidation event; selling below valuation, cost or last sold price; heavily reduced or bargain; divorced sale, deceased estate or illness conditions; and anything which requires an ‘immediate sale’.
The top five regions with the highest percentage of distressed listings, as well as a state-by-state breakdown can be seen below.
|
Region |
Distressed listings |
% of market |
|
Gold Coast Main |
557 |
14.6%
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|
|
Gold Coast North |
186 |
9.7% |
|
Gold Coast Hinterland |
198 |
8.2% |
|
Gold Coast South |
97 |
7.9% |
|
Gold Coast West |
118 |
6.5% |
|
Sunshine Coast |
714 |
6.4% |
Source: SQM Research
|
State |
Distressed listings |
% of market |
|
Queensland |
5,812 |
6.5% |
|
Northern Territory |
55 |
3.0% |
|
Western Australia |
1,245 |
2.9% |
|
South Australia |
662 |
2.9% |
|
New South Wales |
2,046 |
2.7% |
|
Tasmania |
258 |
2.0% |
|
Australian Capital Territory |
49 |
1.6% |
|
Victoria |
1,310 |
1.4% |
|
National |
11,437 |
3.3% |
Source: SQM Research