Exciting mortgagee sales in challenging suburban areas,
Australian homes, from McMansions to townhouses, worth millions have been seized for mortgagee sales as data shows 100 troubled suburbs.
Realestate.com.au listings indicate nearly 50 properties are currently listed as mortgagee sales, up from over 30 just two months ago. S&P Global Ratings predicts that more will follow, having identified the 10 worst postcodes in Australia for home loan arrears. These postcodes cover more than 100 suburbs where homeowners might soon be forced to sell in distress sales.
The hardest-hit area is postcode 2170 in NSW, where 3.16% of home loans are in arrears. This postcode encompasses a dozen suburbs, including Casula, Liverpool, Liverpool South, Moorebank, and Warwick Farm.
According to the Australian Financial Complaints Authority, “sometimes the financial firm will advertise its sale of the property as mortgagee,” which “might suggest that it will be sold for a cheap price.”
The Australian Financial Complaints Authority (AFCA) stated that “reference to a ‘mortgagee sale,’ especially at auction, can be advantageous as it might attract more buyers.” However, the final sale price will depend “on the individual circumstances of the sale.”
Buyers need to act swiftly, as more affordable properties listed as mortgagee sales are being snapped up faster than luxury ones. For example, a three-bedroom house at 30A Benny, South Brighton, South Australia, which sits on a 392 sq m block near Seacliff Beach and Brighton Beach, has already gone under contract.
Over 100 suburbs fall within the 10 worst-performing postcodes across the country. In Victoria, postcode 3064, which includes Craigieburn, Donnybrook, Kalkallo, Mickleham, and Roxburgh Park, has 2.81% of home loans in arrears. Other problematic Victoria postcodes include 3754, where 2.4% of home loans are in trouble in the suburbs of Doreen and Mernda, and 3023, where 2.34% of home loans are in arrears across Burnside, Burnside Heights, Cairnlea, Caroline Springs, Deer Park, Deer Park North, and Ravenhall.
Only one Queensland postcode, 4211 on the Gold Coast, appears among the top 10 worst areas for mortgage arrears. This postcode encompasses 16 suburbs with 2.46% of home loans in trouble, including Advancetown, Beechmont, Binna Burra, Carrara, Clagiraba, Gaven, Gilston, Highland Park, Lower Beechmont, Mount Nathan, Natural Bridge, Nerang, Nerang DC, Numinbah Valley, Pacific Pines, and South Lamington.
Western Australia also has a postcode in the top 10 worst areas: 6112, where 2.14% of home loans are in arrears. This includes suburbs such as Armadale, Bedfordale, Brookdale, Forrestdale, Harrisdale, Haynes, Hilbert, Mount Nasura, Mount Richon, Piara Waters, Seville Grove, Wungong, and Doobarda.
New South Wales has the remaining four postcodes in the top 10. Postcode 2261 has 2.52% of homeowners in arrears across 15 suburbs: Bateau Bay, Bay Village, Berkeley Vale, Blue Bay, Chittaway Bay, Chittaway Point, Gennings Valley, Killarney Vale, Long Jetty, Magenta, Shelly Beach, The Entrance, The Entrance North, Toowoon Bay, and Tumbi Tumbi.
In postcode 2148, 2.26% of mortgage holders are in arrears. This area includes Arndell Park, Blacktown, Blacktown Westpoint, Huntingwood, Kings Park, Marayong, and Prospect.
In postcode 2259, 2.18% of mortgages are in arrears. This area includes 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 postcode 2570, 2.09% of home loans are currently in arrears. This postcode covers 20 areas: 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.
The latest luxury mortgagee sale is Sherbrooke Manor, a 1.01-hectare rural estate with a price guide of $2.4 million to $2.55 million. This property is listed by Elliot Bell and Bryce McLean of Bell Real Estate Belgrave/Tecoma.
Located at 3 Sherbrooke Road, Sherbrooke in Victoria, the estate offers an array of high-end features. It includes a gentlemen’s room for after-dinner relaxation, four fireplaces, original heritage detailing, framed views of the pool and garden, and a grand entrance designed to impress.
Another notable mortgagee sale is 1-4/14 Fontainebleau Street, Sans Souci, NSW. This listing features four brand-new townhouses with a total of 11 bedrooms, 10 bathrooms, and eight car spaces. The property is listed by Tri Liu and Tuan Tran of Laing+Simmons – Cabramatta. It is conveniently located within walking distance of St George Motorboat Club, local parks, schools, restaurants, and beaches.
Mortgagee sales represent the final stage of a process that can extend over six months. This process is initiated when a borrower defaults on repayments, and subsequent notices to settle overdue amounts are not met.
Not all mortgagee sales automatically go to the highest bidder, as some unique properties remain on the market for extended periods. For example, a home at 37 Warne Terrace in Caloundra, Queensland, boasting the area’s best waterfront views, has been listed for over two months. Iain Simms of Henzells Agency is conducting an expressions of interest campaign for this property. Similarly, a property at 11a Noonbinna Crescent, Northbridge—just 9 km from Sydney CBD—offers views of Sailors Bay. Highland Double Bay agents David Malouf and Harry Schier are holding out for the right offer.
