close
close

Stunning mortgage sales up for grabs as 100 suburbs face trouble

Multimillion-dollar Australian homes have been repossessed in mortgage sales – from McMansions to inner-city townhouses and apartments, with 100 suburbs in trouble, data shows.

Realestate.com.au's listings show that nearly 50 properties are already listed as mortgage sales – up from more than 30 two months ago. S&P Global Ratings expects more developments after it named the 10 worst postcodes in Australia for home loan arrears, covering more than 100 suburbs where owners could soon be forced into distressed sales on the market.

The worst affected area is the 2170 postcode in NSW, where 3.16% of home loans are in arrears; this region spans a dozen suburbs including Casula, Liverpool, Liverpool South, Moorebank and Warwick Farm.

The Australian Financial Complaints Authority explains that “sometimes the finance company will advertise the sale of the property as a mortgagee”, which may give the impression that the property is being sold at a bargain price.

NEWS: Backlash: How MPs are fuelling the housing crisis

Top deals in Queensland's Australian retirement hotspots

Suburbs in a journey through time: Where to buy now at 2014 prices

An offer is already being made on this three-bedroom house at 30A Benny in South Brighton, South Australia, after it was repossessed by the mortgagee.

The AFCA said that “the reference to a 'mortgage sale', particularly at auction, can be positive as it may attract more buyers”, with the final sale price depending “on the individual circumstances of the sale”.

Buyers will need to be quick as the cheaper properties listed as mortgage sales are snapping up faster than the luxury properties, such as a three-bedroom house at 30A Benny, South Brighton, South Australia, which is already under contract to purchase and sits on a 392sqm lot close to Seacliff Beach and Brighton Beach.

Over 100 suburbs alone are in the top 10 worst performing postcodes in the country. In Victoria, 2.81% of mortgages are in arrears in postcode 3064, which includes Craigieburn, Donnybrook, Kalkallo, Michleham and Roxburgh Park. Other Victorian postcodes and suburbs include 3754, where 2.4% of the suburbs of Doreen and Mernda are in distress, and 3023, where 2.34% of mortgages are in arrears in Burnside, Burnside Heights, Cairnlea, Caroline Springs, Deer Park, Deer Park North and Ravenhall.

A two-bedroom, two-bathroom apartment high above Museum Station in central Sydney will be auctioned by a mortgagee at 12pm on Thursday 5 September. The address is 403/130 Elizabeth Street.

Only one Queensland postcode, 4211 on the Gold Coast, was among the top 10 areas with the worst arrears, despite it having 16 suburbs where 2.46% of households were affected, including Advancetown, Beechmont, Binna Burra, Carrara, Clagiraba, Gaven, Gilston, Highland Park, Lower Beeechmonth, Mount Nathan, Natural Bridge, Nerang, Nerang DC, Numinbah Valley, Pacific Pines and South Lamington.

Western Australia also had one postcode in the top 10 worst areas: 6112, where 2.14% of home loans are in distress in Armadale, Bedfordale, Brookdale, Forrestdale, Harrisdale, Haynes, Hilbert, Mount Nasura, Mout Richon, Piara Waters, Seville Grove, Wungong and Doobarda.

The remaining four News South Wales postcodes were in the top 10, including 2261, where 2.52% of homeowners live in severe distress across 15 suburbs: Bateau Bay, Bay Village, Berkeley Vale, Blue Bay, Chittaway Bay, Chittaway Point, Genning Valley, Killarney Vale, Long Jetty, Magenta, Shelly Beach, The Entrance, The Entrance North, Toowoon Bay and Tumbi Tumbi.

In the 2148 postcode, 2.26% of mortgage holders are behind on their mortgage payments. This spans Arndell Park, Blacktown, Blacktown Westpoint, Huntingwood, Kings Park, Marayong and Prospect.

Another property available for mortgage sale is 22 Yalumba Place, Edensor Park, NSW, with a guide price of $1,800,000.

In postcode 2259, 2.18% of mortgages are in arrears, including Alison, Bushells Ridge, Cedar Brush Creek, Chain Valley Bay, Crangan Bay, Dooralong, Durren Durren, Frazer Park, Freemans, Wandalan, Halloran, Hamlyn Terrace, Hilliby, Kanwal, Kiar, Kingfisher Shores, Lake Munmorah, Lemon Tree, Little Jilliby and Mannering Park.

In the 2570 postcode, 2.09% of home loans are currently in arrears. This affects the 20 areas of Belimbla Park, Bickley Vale, Brownlow Hill, Camden, Camden Park, Camden South, Cawdor, Cobbitty, Elderslie, Ellis Lane, Glenmore, Grasmere, Kirkham, Mount Hunter, Nattai, Oakdale, Oran Park, Orangeville, Spring Farm and The Oaks.

Mortgage sales are also taking place in the higher price ranges, such as this 1.01 hectare property at 3 Sherbrooke Road, Sherbrooke, in Victoria.

The guide price for the luxurious five-bedroom property is between $2,400,000 and $2,550,000.

The latest luxury mortgage sale currently is a 1.01 hectare country estate – Sherbrooke Manor – offered by Elliot Bell and Bryce McLean of Bell Real Estate Belgrave/Tecoma with a guide price of $2.4 million to $2.55 million. Located at 3 Sherbrooke Road in Sherbrooke, Victoria, the property has all the extras you could want in a country estate, from a gentleman's room for after-dinner entertaining to four fireplaces, original period features, framed pool and garden views and a grand entrance that takes your breath away.

This property at 172 Lower Plenty Road, Rosanna, Victoria has 17 bedrooms, 14 bathrooms and 14 parking spaces.

Several entire apartment blocks that will make you an instant landlord millionaire are also being offered for sale by mortgage lenders, including 172 Lower Plenty Road, Rosanna, in Victoria, which has 17 bedrooms, 14 bathrooms and 14 car spaces on a 1,037sqm site and costs between $4.5 million and $4.95 million. David Blythe and Brad Pearce of Miles Real Estate Ivanhoe and Rosanna describe it as five two-bedroom and seven one-bedroom apartments with an estimated gross income of $284,000 per year when fully let.

1-4/14 Fontainebleau Street, Sans Souci

Four very spacious townhouses are for sale at 1-4/14 Fontainebleau Street, Sans Souci, NSW.

1-4/14 Fontainebleau Street, Sans Souci

The townhouses are just a short walk from the beautiful St. George Motor Boat Club.

Then there's 1-4/14 Fontainebleau Street, Sans Souci, in NSW with 11 bedrooms, 10 bathrooms and eight parking spaces in four townhouses offered by Tri Liu and Tuan Tran of Laing+Simmons – Cabramatta. The St George Motorboat Club, local parks, schools, restaurants and beaches are within walking distance and all townhouses are brand new.

Mortgage sales are the final step in a process that can take up to six months and are initiated when a mortgage/borrower defaults on their payments and fails to comply with a demand for payment to repay past-due amounts.

Mortgage lenders have taken 37 Warne Terrace, Caloundra, for sale and are awaiting an appropriate price reduction.

11a Noonbinna Crescent, Northbridge, NSW, is still for sale after mortgage lenders repossessed it.

However, not all mortgage lenders will simply accept the highest offer, with some unique properties sitting on the market for several months. A home at 37 Warne Terrace in Caloundra, Queensland, boasts the best water views in the area and has been for sale for over two months. Iain Simms of Henzells Agency has launched an expressions of interest campaign for the sale. Another home at 11a Noonbinna Crescent in Northbridge – just 9km from the Sydney CBD – has views of Sailors Bay. Highland Double Bay agents David Malouf and Harry Schier are waiting for the right price.

The 10 worst performing postcodes

Data as of June 2024.

State Suburb Postal Code Loan Arrears (%)

NSW Casula 2170 3.16%

VIC Craigieburn 3064 2.81%

NSW Bateau Bay 2261 2.52%

QLD Advancetown 4211 2.46%

VIC Doreen 3754 2.40%

VIC Burnside 3023 2.34%

NSW Blacktown 2148 2.26%

NSW Alison 2259 2.18%

WA Armadale 6112 2.14%

NSW Camden 2570 2.09%

Source: S&P Global Ratings

You may also like...