Queensland was the only mainland state to record quarter-on-quarter growth in property sale settlements, with more than 59,000 settlements processed in the first quarter of the 2022 financial year, according to PEXA Insights, the research arm of PEXA – Australia’s leading digital property settlement platform.
The quarterly Property and Mortgage Insights (PMI) report provides unique insights into property settlement and mortgage trends across the major Australian states. The report outlines that although there was a softening of Australia’s property market when compared to the previous quarter, more than 210,000 sale settlements were recorded (up 34% year-on-year) worth more than $183 billion (up 78% year-on-year).
The trends that matter in Australian property between July to September 2021
- Queensland leads all mainland states for volume of property sale settlements, recording +59,000 property sale settlements (up 3% on the previous quarter, and 42% year-on-year) worth more than $42 billion (up 93% year-on-year).
- Greater Brisbane experienced 62% growth year-on-year for the month of August.
- Surfers Paradise came in 6th across the nation for suburbs ranked by total number of sale settlements year to date.
- The New South Wales property market was clamped by the extended COVID-19 restrictions, recording +58,000 sale settlements (down 4% on the previous quarter, but up 29% year-on-year) worth more than $71 billion (up 80% year-on-year).
- Recent declines were more evident in Greater Sydney where extended lockdown restrictions were implemented.
- In a trend that continues from the previous financial year, the regional centres of Port Macquarie, Orange and Dubbo all demonstrated strong property sale settlements across the quarter.
- In a similar story to New South Wales, Victoria’s property market recorded +56,000 sale settlements (down 5% on the previous quarter, but up 34% year-on-year) worth more than $50 billion (up 79% year-on-year).
- Both Greater Melbourne and Regional Victoria experienced a decline in sale settlements from the previous quarter, however Greater Melbourne experienced the sharper drop likely due to the extended lockdown restrictions implemented across the region.
- After an uplift towards the end of 2020, Victoria’s commercial property market has shown little growth throughout 2021, with a decline over the past three months.
- There are signs the property markets in both Western Australia and South Australia may have peaked given both states witnessed a quarter-on-quarter decline of sale settlements in the absence of notable restrictions.
- Western Australia recorded +23,000 sale settlements (down 4% on the previous quarter, but up 36% year-on-year) worth $13 billion (up 62% year-on-year).
- South Australian recorded +14,000 sale settlements (down 8% on the previous quarter, but up 20% year-on-year) worth more than $7 billion (up 35% year-on-year).
According to PEXA Insights’ Head of Research, Mike Gill: “Queensland was certainly the standout performer of the September quarter for Australian property, showing no signs of slowing down and posting more sale settlements for the quarter than the larger states of New South Wales and Victoria.
“These are the first quarter-on-quarter declines we’ve seen this calendar year for property sale settlements across Australia, the extended lockdowns in both New South Wales and Victoria have temporarily slowed momentum.
“It appears that property markets in both Western Australia and South Australia may have hit their peak for settlement volumes, with both states experiencing declines in the September quarter. However, we know that volumes commonly dip during the colder winter months, so we will be looking closely at the important spring selling season in the coming months,” said Mr Gill.
The PMI report also analyses consumer lending and mortgage trends, with new loans declining nationally since 1 July 2021, following a similar trend to sale settlements. However, new loans were still up 39% year-on-year for August, suggesting consumer demand remains strong.
A state-by-state analysis of competition within the lending sector highlights a tale of two halves for Australia’s major banks.
“Australia’s top four banks have further solidified their leading market position for new loans in Victoria, New South Wales and South Australia, however they have lost ground in recent months to customer-owned and domestic banks in both Queensland and Western Australia,” said Mr Gill.
PEXA Insights will continue to monitor the market impacts of extended lockdowns in both Victoria and New South Wales.