Distressed listings launch over June: SQM Research

As highlighted by SQM Research’s analysis, there were 6,014 distressed listings in Australia during June, marking a 4.5 per cent month-on-month boost. 

This rise in quick sales was largely consistent across the country, with its strongest being reported in NSW (10.3 per cent) and Victoria (6.2 per cent). 

However, growth in distressed listings was also observed in Queensland (5.8 per cent), Tasmania (5.6 per cent) and Western Australia (2.1 per cent). 

Previous reports have found both the Queensland and Tasmania capitals were considered two of the top 10 cities for housing value growth during the first three months of the year, soaring year-on-year by 28.4 per cent and 26 per cent respectively. 

Separate findings by CoreLogic also noted that Brisbane, Hobart and Perth all experienced quarterly increases in prices over this same period.

South Australia (-5.3 per cent) – which has also reported continued growth over the pandemic – and the Northern Territory (-1.2 per cent) were the only state and territory to experience a decline in distressed listings over June. 

While these figures indicated more Australians are feeling an urge to quickly offload property, this latest figure is 21.4 per cent lower than the 7,656 distressed listings reported in June 2021 – an annual deficit that was recorded across most of the country. 

According to SQM Research’s figures, only Tasmania (21.3 per cent), NSW (8.3 per cent) and Victoria (1.6 per cent) experienced an annual bump in distressed listings. 

By comparison, despite the monthly rise, South Australia (-60.1 per cent) and Queensland (-34.1 per cent) both reported incredibly strong declines over the year. 

But according to SQM Research, this monthly change could suggest that distressed listings could return to levels seen before COVID-19.

As highlighted by the research outfit, there were roughly 15,000 distressed listings across Australia over January 2020. 

Commenting on these figures, SQM research managing director Louis Christopher said that with ongoing rises in interest rates and the end of the COVID-19 relief period within the banking sector, he predicts that distressed listings activity could return to levels recorded prior to COVID-19. 

On Tuesday (5 July), the RBA lifted the cash rate for the third consecutive month, increasing the figure to 1.35 per cent. 

However, Mr Christopher said this trend is not currently an immediate concern for Australia. 

“So, while it’s likely we will keep reporting rises over the next few months, it is not something I would be overly concerned about unless numbers rise well above 15,000 properties,” Mr Christopher said. 

“Nevertheless, it is a noteworthy statistic, and we will be providing further insights into distressed property activity including abnormal areas of concentration as they arise.”

The same report also noted that property listings across Australia sank over the year to June, falling by 6.2 per cent. 

This was felt at its strongest in Adelaide (20.6 per cent) and Brisbane (17.5 per cent). 

Hobart, (32.8 per cent), Sydney (11.1 per cent) and Darwin (3.4 per cent) were the only three cities to report annual increases in total property listings over this same period.  

Listings older than 180 days were also found to have increased by 1.6 per cent nationally over June, while those under 30 days fell by 5.4 per cent. 

Annually, both fell by 31.1 per cent and 2.1 per cent respectively. 

[Related: Clearance rates at lowest level since April 2020]