An Illawarra postcode has featured in a list of NSW’s top 10 worst postcodes for bond forfeiture.
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The 2502 postcode, which incorporates Warrawong, Cringila, Primbee and Lake Heights, was among the postcodes listed.
The data, from the NSW government’s secure online lodgement system Rental Bonds Online, which holds more than 800,000 rental bonds, was released on Thursday.
The data has been released for the first time by Fair Trading.
According to the data, NSW’s top 10 worst postcodes for bond forfeiture list was topped by 2163 (Carramar, Lansdowne and Villawood), with 61 per cent of bond money retained by agents over the April-June quarter in disputes about, or non-payment of, rent.
In Georges Hall, 57 per cent of rental bond money was retained.
Also ranking among the top ten was 2502.
The 2502 postcode was ranked number eight on the worst ten list, with 51 per cent of bond money going back to the agent (from 101 properties measured).
According to the 2016 Census data, in the 2502 postcode area the median weekly household income is $918, and the median weekly rent is $250.
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The Census data indicated that in this area, households with rent payments greater than 30 per cent of household income was at 17.5 per cent.
The number of households where rent payments were 30 per cent or more of an imputed income measure were expressed as a proportion of the total number of households in the area.
Domain Group chief economist Dr Andrew Wilson told the Domain Group that, with rents so high in Sydney and the median rent now sitting at $550 a week, many tenants were being forced into accommodation they couldn’t really afford just to have a roof over their heads.
This could ultimately lead to defaults and rental bonds being retained.
“I don’t think there’s a lot of difference between shortage of rental properties in the regional centres and what’s happening in Sydney itself, which is basically a very short supply of rental properties,” he told the Mercury.
“There’s a lot of growth in the Illawarra. Wollongong’s very strong at the moment and it’s really a factor of the under-supply of property.
“There’s very strong migration coming into NSW. People are moving into areas where it can be more affordable. In the Illawarra that’s what’s driven house prices strongly… And of course rents follow prices.
“I think it’s just an affordability issue that’s catching up with the people that may been have paying lower rents previously, but are now having to pay higher rents because of higher demand.”
