15pc of major city sales are distress sales

15pc of major city sales are distress sales

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A new report from SQM Research reveals the spread of distressed sales across the country, with one major Australian city recording staggering figures.

According to the data, there are currently 11,437 properties selling under distressed conditions, representing 3.3 per cent of all stock on the market.

However, the Gold Coast has registered a much higher percentage, at 14.6 per cent, according to managing director of SQM Research Louis Christopher.

SQM defines a distress sale as mortgagee in possession, bank forced sale, heavily reduced or “bargain” conditions, divorced sale, deceased estate, illness conditions or displaying a requirement for an immediate sale.

Nationally, the top six regions with the highest percentage of distressed listings all belong to south east Queensland.

Following the main Gold Coast region was Gold Coast North with 9.7 per cent of listings classified as distressed; Gold Coast hinterland was next with 198 distressed listings, to represent 8.2 per cent of all stock on market.

The new data may be able to reveal new insights into market conditions, as well as help sellers find fast transactions.

“Overall, the expectation is that there will be rises in distressed properties during market downturns or a rising interest rate environment; and falls during market upturns and an improving economy," Mr Christopher said.

“What we have been able to do here is a national first and opens the way for property buyers to efficiently search for these types of properties.

“In addition, we are also able to provide these homes’ advertising history, date and price they last sold for. While the major listors enable some manual searches of these properties, it is impossible to search for them in bulk… we are now filling this void,” he said.

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