INFOGRAPHIC: Australia’s property boom prompted many people to take out home loans and buy residential or investment properties in spite of high property prices – only to be followed by a market downturn.
But despite signs of a market correction in the past few months, borrowers who were tied up with high mortgage payments continue to experience financial stress.
According to the Australian Bureau of Statistics (ABS), there are areas where this is most common: about 6,904 households are at risk of defaulting on their loans in 10 suburbs across four states.
The ABS revealed that two suburbs in NSW, particularly in Sydney, have the highest mortgages, and this has led to increased mortgage payment stress for households in debt.
Specifically, 7,887 Chipping Norton households are experiencing mortgage repayment stress – with 124 of them being at risk of defaulting. This is followed by 3,793 Leumeah households in stress, among which, 121 may potentially default on their loan.
Records show that affected households have already seen losses of $0.8 million to $1.1 million.
The highest losses were recorded in Perth, Western Australia, where the suburbs of Tapping and Merriwa have already seen $3.1 million and $3.7 million loss, respectively.
Tapping reported 313 households risking default among its 6,793 households in stress, while 216 households risk defaulting among Merriwa’s 5,218 financially stressed households.
Tapping takes the third spot for the suburbs with highest mortgages, while Merriwa places seventh.
Only one Queensland suburb made it to the list, but Harrisstown in Toowoomba takes the fourth spot with $2.9 million in losses.
The ABS recorded 6,534 stressed households in Harristown, among which 277 already risk defaulting.
The remaining five suburbs are all located in Victoria and have a combined loss of $13.4 million.
The Melbourne suburbs of Berwick and Narre Warren South take the fifth and sixth spots in the list with 156 and 188 households at risk of defaulting, respectively. The number of households in stress are high in both suburbs, with 5,959 in Berwick and 5,954 in Narre Warren South.
Sydenham and Pakenham, on the other hand, take the bottom two spots with 5,066 and 4,915 households in stress, respectively. Among them, Sydenham recorded 173 households risking default and Pakenham reported 189.
The final VIC suburb is Ballarat East in Ballarat, where there are more households at risk of defaulting than stressed ones. Ballarat East revealed a staggering 5,147 households at risk of default and 5,073 households in stress.
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