Melbourne is emerging as a mortgage delinquency hot spot, Moody’s Ratings finds in a new analysis.
“Many of the suburbs with the highest mortgage delinquency rates in Australia are in Melbourne.
“The unemployment rate in Melbourne is above the national average, while income growth is below the national average and the housing market is softer than other major cities.
“The combination of these factors means Melbourne is likely to remain a weak spot for
mortgage delinquencies over the next year.”
Mortgage delinquency rates have increased in all Australian states and territories.
30 days plus arrears were 2.00 per cent Australia-wide at the end of May 2024, Moody’s said and can be inferred to have increased since then.
Tellingly, arrears hot spots have cropped up in inner cities and not just growth areas on the fringe.
Moody’s ranked ‘Melbourne – Inner’ as recording arrears rates of 5.5 per cent.