According to Colliers International research, the number of distressed properties that were put on the market last year increased by more than 20%, with the total number of distressed listings rising from 595 in December 2010 to 717 a year later.
While industrial and development properties took the top two spots for distressed listings, a marked increase in listing numbers saw residential property take the third spot.
The highest number of distressed listings was found in the troubled South-East Queensland property market, with the NSW market also showing a high number of distressed properties.
Of the distressed properties handled by Colliers International, for example, 106 were in Queensland and 84 were in NSW.
While private buyers were the most active when it came to picking up a distressed property last year, Colliers International director, Investment Services, Matthew Meynell noted that there has also been a strong upswing in the number of SMSFs making enquiries about distressed assets.
“Any property that has a strong tenancy profile has attracted significant interest from this buyer group,” he said, adding that most SMSFs are adopting the “traditional property fundamentals” of having multiple income streams coming not only from residential property, but also from retail and commercial.