A stark wealth divide is emerging in Queensland between mortgage-stressed homeowners and cashed-up luxury property buyers.

Homeowners in more than 20 suburbs across the state owe more than $500,000 on their mortgages, while some of the state’s most popular inner-city hotspots are missing from the top 50 ranking — suggesting high-net-worth buyers are paying cash for prestige homes.

Exclusive data by mortgage specialist Digital Finance Analysts (DFA) shows Queensland’s average mortgage of $297,851 trails New South Wales at $523,905 and Victoria at $342,081. Paying off a loan in Queensland was also cheaper than in Western Australia and the ACT, and came in under the national average of $366,328.

SOLD: $1.48m, 12 Pine Valley Dr, Robina

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The surprise figures put the average debt size at about 30 per cent of median home prices — but skew lower taking into account longer term mortgages already significantly paid off.

Middle-income families who recently bought in popular city hotspots and lifestyle destinations now face financial pressures typically seen among the state’s wealthiest, leaving many increasingly strained to meet repayments.

DFA data shows the affluent inner-north Brisbane suburb of Ascot tops the list with an average mortgage of $1.38m.

But it’s not just the elite suburbs feeling the pinch. Once-affordable areas where prices have skyrocketed, including Albany Creek and Kuraby in Brisbane, and Miami and Robina on the Gold Coast, also ranked in the top 50 suburbs with the heaviest debts.

SOLD: $1.2m 27 Daniel Dr, Albany Creek

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PropTrack data shows home values in these areas have risen by 13 to 22 per cent since last year, pushing everyday Queenslanders to their financial limits.

The top 50 suburbs included 22 in Brisbane, 13 on the Gold Coast, eight on the Sunshine Coast, five in Moreton Bay, and one each on the Cassowary Coast and Stradbroke Island. Of those suburbs, 23 had debts above $500,000, with five surpassing $600,000, four exceeding $700,000, and three over $800,000.

In Brisbane, Indooroopilly and Clayfield, typically popular with families due to their proximity to the city and good amenities, recorded some of the heaviest loan burdens, at $796,677 and $778,710 respectively.

SOLD: $3.7m, 67 Orient Dr, Sunrise Beach

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Homeowners in Benowa and Mermaid Waters on the Gold Coast owed an average of $810,143 and $701,796 respectively, while on the Sunshine Coast, Sunrise Beach and Yaroomba had debts of $876,467 and $679,000.

But some of the state’s priciest areas were missing from the top 50 ranking.

Areas unencumbered by significant debt despite typical home values of $2m-plus included Teneriffe and Hamilton in Brisbane, Mermaid Beach and Surfers Paradise on the Gold Coast, and Sunshine Beach on the Sunshine Coast.

Sarah Hackett of Place Estate Agents said cash offers were commonplace in the prestigious riverfront market

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Place New Farm managing director Sarah Hackett said a “clean contract” — one not subject to finance and with few other conditions — gave a prestige buyer the best chance of their offer being accepted.

Ms Hackett sold a luxury riverfront home in New Farm for $18m earlier this year, after receiving three offers, all cash and all above $15m.

Cash buyers included established business owners as well as downsizers and older homeowners who had built wealth through previous property trade.

“The average prices of these [inner-city] suburbs is much higher than for Greater Brisbane, and that means the demographic of the buyer is probably 45-65 years of age,” Ms Hackett said.

“Most of the time it is a double-income earning couple and it is certainly not their first home — they have got ahead by selling up the ladder so they can keep improving their home.”

SOLD: $760,000, 22 Saint Patrick Ave, Kuraby

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DFA CEO Martin North said October data revealed many households were under “significant financial pressure”, spending more than 40 per cent of, and in some cases over half, their disposable income on rent or mortgage payments.

“Younger families, especially first-time buyers, are under the most pressure, but it is spreading into more segments, and that does include some more affluent groups as well as older Australians,” Mr North said.

He said real income, adjusted for inflation, was lower than a decade ago for many families despite recent tax changes and increased government support.

Real estate agent Ben Williams of Re/Max said buyers who purchased in the last 12-18 months were worst affected.

Gold Coast agent Ben Williams with Andrea Wiliams and Natalie Mayne. Picture: Jerad Williams

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“People are paying more than ever to live in what used to be affordable, entry-level suburbs, hoping for interest rate cuts that haven’t come,” Mr Williams said.

“Instead, inflation and the cost-of-living crisis have worsened, and the biggest burden is the mortgage. We’re seeing people come back on the market much sooner than planned — some as soon as six months after buying because they simply can’t afford to stay.”

The Gold Coast-based agent said next-generation buyers had been priced out of the city and were moving to the regions, where houses were more affordable.

“Your average battlers are really struggling. The financial strain is also impacting mental health, and promises from banks like delayed payments are often just smoke and mirrors, adding fees when repayments resume,” Mr Williams said.

SOLD: $2.485m, 32 Dennis St, Indooroopilly

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PEXA’s latest Property and Mortgage Insights Report shows continued momentum, with Queensland recording the highest number of new residential loans at 36,078 in the three months to September — an increase of 19.7 per cent from last year.

The median home price in Brisbane jumped 12.51 per cent over the past year to reach $862,000 — forcing buyers to borrow more to crack the still-heated market.

With the official cash rate expected to hold at 4.35 per cent when the RBA meets next week, there’s little immediate relief in sight.

For the first time since the RBA began hiking rates in May 2022, ASX last month priced in four interest rate cuts within the next 12 months. An analysis by Finder shows the average homeowner would save $5,076 per year after four 0.25 per cent cuts.

Finder head of consumer research Graham Cooke

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But Finder head of consumer research Graham Cooke warned rate cuts could be a double-edged sword, potentially reigniting demand and driving prices up again.

“While rate cuts might alleviate some financial pressure, they could also make it harder for first-home buyers to enter the market,” Mr Cooke said.

“Homeowners on fixed-rate mortgages might not immediately benefit, but those with loans reverting to variable rates could see better refinancing options.”

Queensland suburbs owing the most on their mortgages have been revealed

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TOP 20 QLD SUBURBS WITH WORST MORTGAGE DEBT

Average of mortgage outstanding/Suburb

$ 1,387,000/Ascot

$ 876,467/Sunrise Beach

$ 810,143/Benowa

$ 796,677/Indooroopilly

$ 778,710/Clayfield

$ 715,000/Dunwich

$ 701,796/Mermaid Waters

$ 698,600/New Farm

$ 679,000/Yaroomba

$ 666,115/Paradise Point

$ 628,571/Hawthorne

$ 627,167/St Lucia

$ 586,800/Toowong

$ 586,077/Albany Creek

$ 577,474/Tamborine Mountain

$ 576,222/Chapel Hill

$ 573,462/Ashgrove

$ 567,471/Wurtulla

$ 558,818/Alexandra Headland

$ 552,323/Bardon

* course: DFA