Distressed property sales surge in the Sunshine State

By |
The December quarter saw the highest number of distressed commercial properties for sale, representing 12% of all national listings in 2014.

With 60% of these located in Queensland, the state continues to have the highest proportion of distressed asset sales in Australia.

LandMark White research analyst Max Gran said this was significantly due to the grind in the commodities boom.

“In the case in Queensland you’ve got smaller towns with smaller populations and a lot of them run on one industry, specifically mining,’’ he said.

“We’re finding that as the price of things like iron ore and coal fall, industrial space in these regional towns in Queensland start being taken over by liquidators and receivers.”

Gran said sticking to the larger centres would be the best option for investors in the area.

“In terms of mitigating your risk in a place like Queensland, what the data is showing is you’re probably less likely to have distressed asset if you’re purchasing in Brisbane than if you’re purchasing in say Toowoomba or Townsville," he said.

In contrast, the distressed sales ratio in the southern states remained relatively steady, with Victoria rising to 8% and New South Wales dropping to 6% for the December quarter.

“In general if you’re in the metropolitan regions especially in places like Melbourne and Sydney you’re not going to see much forced sales in those spaces because they’re currently going through booms,’’ added Gran.

The higher and more concentrated populations of Victoria and New South Wales coupled with high international interest created a more secure environment for investors.

“In a place like Sydney where you’ve got a deep market, if there’s a little bit of shock to one market you can tend to pick it up in other markets," said Gran.

“We’re probably not going to be seeing any issues in the Melbourne space in the next quarter to quarter. But once we see those interest rates rise eventually, there might be a little bit of trouble in those metropolitan areas.’’
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : dulwich hill , mt gravatt , eagle vale , tweed heads south , tiwi

go back
Comments
  • James says on 13/02/2015 08:43:46 AM

    And here comes the crunch of the economic slowdown ..... Question is, will the media, this site and agents help people or spout the same crap about buy buy buy?

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here