Mortgage stress soars to staggering levels across Coast

MORTGAGE stress in some Gold Coast suburbs has increased almost 1000 per cent in four years.

Data released this week by Digital Finance Analytics shows 19,881 of the city’s 89,000 properties are under financial stress, up from 15,036 in 2020 and 12,779 in 2018.

A comparison of this week’s data and that of 2018 reveal a dramatic shift in stress across the city as a result of the booming real estate and development sector.

The number of stressed households in Palm Beach and Elanora has shot up 965 per cent while Broadbeach has risen 571 per cent.

Southport, Labrador, Coomera and Nerang all recorded increases of more than 100 per cent.

DFA chief executive Martin North said the data was a reflection of the effects of Covid and the suburbs that had experienced significant real estate sales.

“With Palm Beach, a lot of properties have changed hands and units sold, which means the residents there have a lot of big mortgages while dealing with the increase in property values,” he said.

“During the same period there has been virtually no income growth either.”

Mortgage stress means homeowners are spending at least 30 per cent of their income on loans.

The data shows 2481 homeowners are under enormous financial pressure, up from 1900 in January 2020 and 1500 in January 2019.

The postcode that includes the suburbs of Clear Island Waters, Robina and Merrimac is most vulnerable, followed by Sovereign Islands, Paradise Point, Hollywell, Biggera Waters and Runaway Bay.

Tugun, Currumbin and

Currumbin Valley are among the least affected. While some suburbs have posted dramatic increases, stress levels in several suburbs have fallen. They include Currumbin (down 33 per cent), Tallebudgera (down 24 per cent) and Ashmore (down 22 per cent).

The Reserve Bank of Australia maintained the cash rate at a historic low of 0.10 per cent when it met this week. However, an interest rate hike is expected to occur in August.