Separate figures show inflation remains elevated,rising 0.1 of a percentage point to 3.6 per cent in the 12 months to April,thanks to increases in housing,food,alcohol and transport costs.
The Moody’s Ratings report found regional and outer-suburban areas had higher delinquency rates compared to inner cities because households in those areas had lower disposable incomes,making them more vulnerable to cost-of-living pressures.
Byford in south-east Perth had the highest delinquency rate — 5.33 per cent — but Kingston in Queensland’s Logan region experienced the greatest increase in 30-day delinquencies of the top 10 worst-performing regions,with a rise of 3.16 percentage points to 4.19 per cent.
Six Melbourne suburbs made the top 10,with delinquency rates between 3.57 and 5.01 per cent.
The report noted that in contrast,capital cities,particularly Sydney and Brisbane,had some of the lowest delinquency rates thanks to strong home-value growth and rising incomes.
Alena Chen,vice president and senior credit officer at Moody’s Ratings,said while delinquencies had risen,they remained low by historical standards. Nationally,delinquencies were at 1.72 per cent in November last year,compared with the pre-pandemic rate of 1.82 per cent in November 2019.