State’s most risky regions revealed
Property markets in five Queensland regions have been identified as most at risk of rising rental vacancies and distressed sales as the impacts of COVID-19 job losses unfold.
The Risky Regions Report, compiled by property investment researchers Select Residential Property, pinpoints regions across Australia which rely on those industries heavily affected during the COVID-19 pandemic.
The report draws on a survey by the Australian Bureau of Statistics, which shows accommodation and food services as well as arts and recreation services suffered the highest rate of COVID-related job losses.
"If job losses from COVID are significant in certain industries, then we'd expect to see regions with a high concentration of such industry workers more heavily affected," reports
Jeremy Sheppard, Director of Research at Select Residential Property.
At the top of the risky regions across Australia is the Sunshine Coast, where around 15 per cent of workers fall into the two worst-hit industries.
The Gold Coast and inner city Brisbane came in at third and fourth respectively, while Brisbane west (number 9) and central Queensland rounded out the top 10.
Other Australian regions to have been heavily affected by COVID job loss are inner western Sydney (2), the NSW Southern Highlands and Shoalhaven (5), Coffs Harbour and Grafton (6), Hobart (7) and inner Melbourne (8).
Conversely, Toowoomba, the Queensland Outback and Moreton Bay north were named as regions least affected by the COVID-19 crisis due to the low percentage of workers depending on those vulnerable industries.
Property markets in those regions are perceived to be at risk as the potential for rental vacancy rates and distressed sales is greater, according to the report.
"The areas where you have a high proportion of unemployment in these industries and a high proportion of renters, the potential impact is greater," Mr Sheppard said.
"Looking at how the national vacancy rate has changed from March to April, there's been a sudden increase of 23 per cent which is significant."
City CBD areas are considered most at risk of rental vacancies, including Brisbane inner city which was number 3 on the vacancy risk list due to the high proportion of renters and workers reliant on COVID-affected industries.
Queensland fared better when it comes to potential risk of forced housing sales, with Victoria accounting for 80 per cent of the regions most likely to see a rise in distressed stock.
"In regions where owner-occupiers have lost their jobs, assuming the government can't support them, their only option may be to sell," Mr Sheppard said.
"On the assumption that the JobKeeper is insufficient, you might see more stock come on the market in those regions affected by COVID-19 job losses."
Originally published as State's most risky regions revealed