News Release - Thursday 20 October 2022
After riding a wave of strong momentum for more than two years, Australia’s property market has seen a decline in sales settlements quarter-on-quarter, with New South Wales experiencing the largest declines in both property sales volume and aggregate value, according to the latest report from PEXA.
Against the backdrop of rising interest rates and growing inflation, New South Wales recorded 41,357 residential sales settlements (-13% quarter-on-quarter) worth an aggregate value of $47.7 billion (-16.8% quarter-on-quarter), signalling the nation’s most populous state is seeing a faster market slowdown than any other region.
In a trend first observed during the middle of the pandemic, Queensland’s property market has once again topped the nation for total volume for the quarter, recording 46,621 residential sale settlements (- 10.9% quarter-on-quarter) worth an aggregate value of $32.3 billion (-11.8% quarter-on-quarter). Victoria saw a modest decline in both volume of residential property sales settlements with 44,255 (-11.8% quarter-on-quarter), and residential aggregate value of $37.8 billion (-10.2% quarter-on-quarter), however recorded almost 3,000 more sales settlements for the quarter than its larger neighbour New South Wales.
Western Australia’s property market has demonstrated resilience to date, recording a combined 21,648 residential and commercial sale settlements (-11.4% quarter-on-quarter), with an aggregate value of $12.9 billion (-10.9% quarter-on-quarter).
PEXA’s Head of Research Mike Gill, comments: “The largest and fastest rate rises announced by the Reserve Bank of Australia since the mid-1990s are certainly starting to have an impact, with the Australian residential property market’s record run for the past few years well and truly over.”
“Although most states saw double digit declines for the quarter across both total volume and aggregate value of sale settlements, we must remember that we are coming off record high levels of activity. Also, we are not seeing the same level of residential buyer trepidation from the commercial sector. Although commercial settlement volumes were down in some states, the national commercial market performed relatively well in the September quarter, with Victoria posting an increase of 1.2% in settlement volumes.”
The PEXA Property Insights Report also dives into postcode level activity, with outer metropolitan growth corridors such as Truganina, Marsden Park and Craigieburn continuing to post strong residential sale settlement results. Surfers Paradise also continues its strong momentum seen over the past two years.
The latest PEXA Property Insights report can be accessed via pexa.com.au/insights.
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PEXA (Property Exchange Australia) is Australia’s online property exchange network. It assists members – such as lawyers, conveyancers and financial institutions – to lodge documents with Land Registries and complete financial settlements electronically. PEXA was formed in 2010 to fulfil the Council of Australian Governments’ (COAG) initiative to deliver a single, national e-Conveyancing solution to the Australian property industry. It was originally known as National e-Conveyancing Development Limited. PEXA is committed to supporting the property industry as it transitions towards a 100 per cent digital conveyancing process that’s fast, safe and efficient.
Since 2014, more than 11 million transactions have occurred via PEXA, and today, more than 85% per cent of all property transfer settlements in Australia are processed on the PEXA platform.