Clayfield is among many suburbs grappling with significant mortgage debt as a stark wealth divide emerges across the state. While luxury property buyers are splashing cash on prestige homes, many middle-income families are financially strained.
New data from Digital Finance Analysts (DFA) reveals that Queensland homeowners owe an average of $297,851, significantly lower than New South Wales and Victoria. However, this average masks a concerning trend: many Queenslanders, particularly those in popular inner-city and suburban areas, carry substantial mortgage burdens.
Affluent Suburbs, Significant Debt
Affluent suburbs like Ascot, with an average mortgage of $1.38 million, top the list. But the financial pressure extends beyond elite areas. Once-affordable suburbs such as Albany Creek, Kuraby, Miami, and Robina, where property prices have surged in recent years, are among the top 50 suburbs with the highest debt levels.
Clayfield’s Debt Burden
Clayfield residents, in particular, face a significant financial burden, with an average mortgage of $778,710. This trend is evident in many other popular Brisbane suburbs, including Indooroopilly, where the average mortgage exceeds $796,000.
Cash Buyers Drive Luxury Market
While many Queenslanders struggle with mortgage repayments, high-net-worth buyers pay cash for luxury homes in prestigious areas like Teneriffe, Hamilton, Mermaid Beach, and Surfers Paradise. These buyers, often established business owners, downsizers, or older homeowners, can secure properties without financing, driving up prices in these exclusive markets.
Financial Pressure Mounts
Martin North, CEO of DFA, warns that many households are under significant financial pressure, spending over 40% of their disposable income on housing costs. Younger families, particularly first-time buyers, are among the most vulnerable, but the strain also affects more affluent groups.
Real estate agents report that buyers who purchased in the last 12-18 months are particularly hard-hit. Rising interest rates, inflation, and the cost-of-living crisis have exacerbated the financial burden, forcing many to sell their properties sooner.
As the gap between the haves and have-nots widens, the future remains uncertain for many Queensland homeowners. While the luxury property market thrives, many face a growing financial burden and a diminishing sense of security.
Published Date 13-November-2024
