For the second consecutive quarter, the rate at which properties across Australia settled on time remained steady, according to the latest On-Time Settlement Report published by property exchange platform, PEXA.
The data revealed the Australian lenders settled 88.1% of property sales on the first date via the PEXA Exchange in Q1 2023 – matching their Q4 2022 performance and eclipsing the corresponding time period in 2022 by 2.4%.
The research also found practitioners (lawyers and conveyancers) recorded a ‘Settled First Date’ (SFD) rate of 87.1%, with this market segment also posting similar results to the previous quarter.
Lifting the industry bar
The On-Time Settlement Report is a PEXA and industry initiative, designed to foster continued improvement of the settlement experience for all stakeholders involved in a property transaction – particularly home buyers.
SFD measures the percentage of total sale settlements for each participant group that successfully settled on the scheduled day via the PEXA Exchange. The metric is designed to align with buyers’ expectations of taking possession of their new property on the agreed settlement date – which has traditionally challenged the sector, given the complexities associated with property settlements.
Queensland topping the chart
For the third consecutive quarter, home buyers in Queensland benefitted from the smoothest settlement experience, with the state boasting an average SFD of 91%.
Victoria was the next best performer (89% SFD), with New South Wales dipping slightly quarter-on-quarter (86.7% SFD).
Les Vance, PEXA’s Chief Customer and Commercial Officer, said: “We’re pleased to see such strong, ongoing industry engagement. Ultimately, it’s about driving awareness, encouraging positive change and delivering superior outcomes for Australian consumers – and that’s what we’re continuing to see within the sector.
“The first quarter of 2023 is a traditionally busy period for the industry – with new year festivities and public holidays mixed in, so to see the continued strong industry engagement and performance is very pleasing. Our mission remains the same – building awareness, being a supporter of progress and partnering with our customers to help provide the best outcomes for Australian consumers. We’re eager to see this positive trajectory maintained into Q2 2023 and beyond.”
