Mapped: Queensland’s worst suburbs for mortgage defaults

The number of Queensland homeowners in trouble after missing mortgage repayments is at its highest level since the Reserve Bank’s record low pandemic cash rate. SEE SUBURB MAP

The number of Queensland homeowners in trouble after missing mortgage repayments is at its highest level since the Reserve Bank’s record low pandemic cash rate, with almost half around the capital region.

Moodys Ratings analysis shows high interest rates and ongoing cost-of-living pressures were beginning to bite across Queensland, especially in areas that have seen phenomenal price growth since the pandemic. Its analysis found eight out of every 10 defaulting suburbs were located within the hot South East Queensland zone, with the Greater Brisbane region accounting for 56 per cent of delinquencies stretching from Logan-Beaudesert to Ipswich to Moreton Bay.

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Woodridge in Logan-Beaudesert (postcode 4114) had the worst mortgage default level in the state at 4.19 per cent. Moody’s Ratings data estimates the current mortgage balance across the suburb at just under $84m.

Ipswich region’s Richlands (postcode 4077) was second with a default rate of 3.31pc and a current mortgage balance of almost $140m, while Woodhill (postcode 4285 in Logan-Beaudesert) was third at 3.13pc, with a current balance of $103m.

The Moodys Ratings report warned “the combination of high interest rates and cost-of-living pressures has depleted the pool of savings that households built up during the pandemic, raising the risk of mortgage delinquencies.

“We expect delinquency rates will only rise moderately this year because unemployment, while increasing over recent months, remains low, though the labour market situation varies from state to state.”

Socio-economic factors are coming into play now as families exhaust savings to meet higher mortgage repayments levels with interest rate rises.

The one fallback factor, Moody’s said, was that strong house price growth “will reduce the risk of losses if borrowers default on home loan payments”.

Of Greater Brisbane’s highest defaulting suburbs, four are in Brisbane East (Victoria Point, Sheldon, Wynnum and Thornlands), four in Brisbane North (Zillmere, Shorncliffe, Wavell Heights and Stafford Heights), six in Brisbane South (Runcorn, Carindale, Stretton, Wishart, Wellers Hill and Sunnybank South), three in Brisbane West (Upper Brookfield, Sherwood, Westlake) and four with the Inner City zone (West End, Newstead, Wilston, and Seven Hills).

The Ipswich region’s rates of defaults go from 1.17pc in Wivenhoe Pocket to as high as 3.31pc in Richlands, with those in between including Springfield Lakes, Yamanto, Redbank Plans and Forest Lake.

Fifteen suburbs on the Gold Coast are on the list.

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Fifteen suburbs were on the list out of the Gold Coast – including Southern Lamington, South Stradbroke, Worongary, Southport, Willow Vale, Miami, Varsity Lakes, Surfers Paradise, and Palm Beach.

The Sunshine Coast fared better with six suburbs listed, Shelly Beach, Tanawha, Towen Mountain, Sunshine Plaza, Wurtulla, and Yaroomba.

Three suburbs were in Cairns – Whitfield, Wrights Creek and Trinity Park, five in Townsville – Vincent, Yabulu, Rasmussen, Thuringowa Central and West End, one in Mackay – West Mackay, two in Fitzroy Wurdong Heights and The Common, and four in Wide Bay – Woongarra, Woondum, Yerra and Wondunna.

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Originally published as Mapped: Queensland’s worst suburbs for mortgage defaults