COVID-19 Gold Coast: Mortgage deferrals worst in Australia
Stark new data shows Gold Coast families have been worst hit in the nation by COVID-19 lockdowns, with suburbs here dominating a list of areas with most mortgage deferrals. SEE WHICH SUBURBS MADE THE LIST
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NEW data shows six out of ten top regions for mortgage deferrals in Australia are on the Gold Coast.
The shock figures, compiled by leading credit analysis company Equifax, also show only one region outside of Queensland makes the top ten list.
Worst affected on the Gold Coast is Surfers Paradise, where 11% of mortgage loans have been deferred by lenders.
Also hard hit were Mudgeeraba, Coolangatta, Burleigh and the Hinterland.
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General Manager of Advisory and Solutions at Equifax, Kevin James, said the figures showed COVID-19 lockdowns had caused huge financial stress in tourist areas.
“The impact of the downturn on tourist trade is acute for Australians living in tourism-dependent Queensland regions”, Mr James said.
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“Tourism is a major industry for Queensland, and with international and domestic visitors curtailed during the pandemic, tourist hot spots have faced reduced occupancy rates, lower incomes and higher levels of unemployment leaving mortgage holders feeling the pinch.”
Mr James said people aged 36 to 45 were the most likely to defer their payments.
“There are more middle-aged people seeking mortgage payment relief than any other age group,” Mr James said.
“This group is likely to have relatively high outstanding mortgage balances and may have been harder hit with business lay-offs or lower income from JobKeeper payments.”
The Mudgeeraba-Tallebudgera area was second only to Surfers Paradise for the number of mortgage deferrals.
Mudgeeraba MP Ros Bates said she was concerned by the figures.
“It’s concerning to hear about the looming economic stress facing many local residents here on the Gold Coast,” Ms Bates said.
“The economic impact of this recession hasn’t even really started to impact many families yet.”
Ms Bates said a “stimulus plan” was needed to “get Queensland working again.”
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The Equifax analysis, based on ABS statistical regions, was conducted in September based on credit history and repayment information available for the month of May.
At the time of the analysis, Queensland’s borders were shut and key tourism businesses such as the Gold Coast’s theme parks remained closed.
Mr James said it was likely there would be some improvement in the figures as Queensland’s borders gradually reopened.
“With the Queensland border beginning to reopen to parts of NSW and SA this week, we expect to see a bounce back as tourism dollars start to flow back into the region,” he said.
Originally published as COVID-19 Gold Coast: Mortgage deferrals worst in Australia