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AU New figures show property in a dismal state

Property Here - Thursday, April 18, 2013

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ALMOST a quarter of all properties advertised in Australia are distressed sales, according to alarming new figures.

And in stark contrast to reports that Queensland’s real estate sector is back on its feet, the state accounts for the majority of those listings.

New figures released by valuation group LandMark White reveal that the sunshine state accounted for a massive 54 per cent of properties advertised by a mortgagee, receiver or liquidator during the March quarter.

The Gold Coast recorded the highest number of distressed property advertisements in the country with 74 per of its listings made by a mortgagee, receiver or liquidator in the three months to March 31.

They included big-ticket items such as the Marina Mirage marina and Hope Harbour marina.

Nationally, most receiver sales were in regional areas, with the highest number of distressed listings during the quarter in the agricultural sector. Residential property was next highest.

LandMark White found that almost 23 per cent of properties advertised in Australia during the quarter were listed by a mortgagee, receiver or liquidator.

Of those, nine per cent were in New South Wales and 15 per cent in Victoria.

Stewart Gilchrist of Colliers' insolvency property services said high-end homes accounted for the majority of distressed sales on the Gold Coast.

“There is still an oversupply of residential in excess of $1 million so those distressed sales would be at the upper end of the market," Mr Gilchrist said.

He said the Glitter Strip’s industrial sector was solid while the commercial market was softer on the back of an oversupply of office space.

“The Gold Coast is development orientated so that could also account for the higher proportion of distressed sales in the region."

He said despite the gloomy figures, confidence had returned to the Gold Coast market.

“Vendors and banks are being more realistic about prices, buyers are back and sales are strong,” he said.

Nationally, the rural sector accounted for 23 per cent of distressed sales, 19 per cent were residential, 16 per cent industrial and 15 per cent retail.

The majority of receivers’ stocks advertised for sale were in regional rather than metropolitan areas - 80 per cent were located outside capital cities.

For the fourth time in six quarters, Queensland accounted for the greatest number of distressed properties for sale nationally.

NSW saw the most positive change, as only seven per cent of all properties advertised in that state were listed by a receiver or mortgagee - a record low. By comparison, the proportion in the same quarter of 2012 was 31 per cent.

Although the distressed ratio in Queensland dropped by 6 per cent, it remains stubbornly high at 39 per cent of all property advertisements in the state. Victoria saw the smallest improvement in the distressed ratio, with a drop from 20 per cent to 19 per cent, which meant that for the first time in the series, Victoria had a higher ratio than NSW.

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