Australian Property

Gold Coast leads nation in distressed properties

Leith van Onselen
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By Leith van Onselen

SQM Research has released its distressed properties report, which reveals that there are 11,437 properties nationally selling under distressed market conditions, representing 3.3% of total current listings (stock on market). There are also 1,200 additional properties selling under “forced” selling conditions.

A breakdown of distressed properties at the capital city level and nationally is shown below:

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The region with the largest amount of distressed conditions is the “Gold Coast Main” with 14.6% of its market in ‘distress’, with other parts of the Gold and Sunshine Coasts also highly represented:

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A distressed listing is defined by SQM Research as a property being offered for sale where it is advertised that the property is sold 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” conditions
  • Divorced sale, deceased estate, illness conditions
  • Requirement for an immediate sale conditions

The distressed properties report also includes overseas seller listings, price reduction listings and other listings that may indicate a potential distressed sale such as “submit all offers”, however these classifications have not made the count in this media release.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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