Rate Hikes Threaten Queensland Homebuyers' Suburbs

Queensland homebuyers face a shrinking list of affordable suburbs if interest rates rise again, according to new analysis from realestate.com.au.

A household earning $166,889, the estimated income needed to support Queensland's average home loan, could lose access to 34 suburbs after a 0.25 percentage point rate hike on Tuesday.

This number would more than double to 72 suburbs if there is another quarter-point increase before Christmas, pushing them beyond their borrowing power.

The Reserve Bank of Australia board meets on September 29, and the analysis found that higher-income buyers earning $250,000 are not immune to these effects, with 25 suburbs falling outside their budget after one hike and 53 after two.

Equifax Australia's executive general manager Moses Samaha warned that another interest rate rise could exacerbate the contraction in mortgage demand, which has been sustained for five straight months.