Property Insights Report | December settlement uplift suggests a positive outlook ahead
Data & Insights, People & Property

Property Insights Report | December settlement uplift suggests a positive outlook ahead

By PEXA • Feb 2024

National property sale settlements experienced an uplift towards the end of 2023 as the number of Australians buying and selling properties surged in the December quarter, signalling a positive outlook ahead and a recovery of the Australian property market, PEXA’s 2023 Property Insights Report has found. 

The report found that in 2023, the total number of property transactions in Australia exceeded 670,000 and was worth a combined value of over $613 billion. However, while the overall property market (including residential and commercial property sectors) experienced a 9.1% decrease in the total value of property transactions in 2023, compared to 2022, property settlement volumes in the final quarter of 2023 steadily increased.  

In the December quarter alone, there were 188,000 sale settlements recorded nationally (the highest volumes of any quarter throughout 2023). 

Residential settlement volumes grew across all price bands in the second half of 2023, with nearly $50 billion worth of residential property settled in December alone. The premium segment of the residential market led the recovery with significant growth in settlement volumes recorded in the second half of 2023 for properties priced over $1M, across the eastern states.  

View Property Insights Report 2023

Property settlement volumes for homes in the $1.5M- $2M and $2M+ price bands increased in the second half of 2023 (compared to the first half), rising 26.7% and 27.3% respectively in NSW, and 18.9% and 23.5% respectively in VIC.  

At the lower end of the market, sale settlements in the sub $500,000 price band were also up across the eastern states. The volume of NSW residential sale settlements valued under $500,000 increased 11.2% in the second half of 2023, with similarly priced VIC settlements also up by 17.0%.  

PEXA’s Head of Research, Mike Gill, said “Compared to the pandemic-related property boom of 2021 and 2022, the property sector experienced a decline in total settlement volumes last year. However, the recovery in settlement volumes in the latter months of 2023 suggest the market may have reached a turning point and buyer confidence is returning. Sales volumes are likely to recover further during 2024. Particularly if inflation decelerates, we could expect the RBA to keep interest rates on hold, and eventually cut them. 

“Looking across each of the five mainland states, New South Wales stood out from other states with the highest spend on residential property, surpassing $192 billion for the year. However, it was Queensland that continued to lead the country for the third consecutive year on a volume basis, recording nearly 176,000 residential sale settlements in 2023. Victoria experienced the largest fall in aggregate value, with a decline of 13.9% in 2023, while over in Western Australia, the market remained relatively unchanged, showcasing its strength. 

“In terms of commercial property transactions, Victoria and New South Wales faced significant declines. New South Wales saw a 17.5% decrease, while Victoria experienced a 16.4% decline in settlement volumes in 2023. These declines can be attributed to the softening of the commercial property market in the high interest rate environment,” he said. 

The PEXA report provides a comprehensive view of property sale settlement trends in Australia for the 2023 calendar year, comparing settlement trends over the past four years, focussing on the five mainland states of NSW, QLD, VIC, WA and SA.  


Residential property highlights: 

  • NSW recorded the highest spend on residential property in CY23 at over $192B. This was down 6.9% on the prior year but remained ahead of second placed VIC on $135.2B. ​ 
  • WA proved to be the most resilient state in the country, recording over 84K sale settlements in CY23. WA maintained the high volumes seen throughout the COVID period, with other mainland states returning to CY20 levels.​ 
  • ​QLD topped the country for the third year running on a volume basis. Nearly 176K sale settlements were recorded in the state in CY23 (down 9.7% on CY22). 

Commercial property highlights: 

  • $27.3B of commercial property settled in NSW in CY23. This was ahead of VIC with $26.5B and QLD with $19.9B. 
  • The aggregate value of commercial sale settlements was down across the eastern states in CY23 but remained substantially higher than CY20 levels. NSW was down 23.5% and VIC down 15.1% compared to CY22. 
  • VIC recorded the highest volume of commercial sale settlements in CY23 at 10,469. QLD was just behind with 10,361 and NSW trailed with 8,578. 


View Property Insights Report 2023



About PEXA 

PEXA is a world-leading ASX-listed digital property exchange platform and property insights solutions business. Since 2014, PEXA has facilitated more than 16 million property settlements through the PEXA Exchange in Australia, with 88% market reach, and in 2022 PEXA launched in the UK.  

The PEXA Group of companies, including .id (Informed Decisions), Value Australia and Land Insight, delivers digital insights and property solutions that help government, financial institutions, banks and property practitioners to unlock the future value of property. 

For more information, please contact: 

Kate Prigg – Corporate Affairs Manager, PEXA 
M: 0497 595 580

Danielle Tricarico – Head of Corporate Affairs, PEXA 
M: 0403 688 980

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