With buyers wary of continued interest rate rises, and sellers holding off on listing their properties in a softer market, settlement volumes were down in the first quarter of 2023, according to the latest analysis from PEXA.
The PEXA Property Insights Report revealed that a total of 145,243 property settlements were recorded across the first three months of the year.
This was down 16.1% on the previous December 2022 quarter and 22.9% below the same period in the year prior.
And while January and February saw modest numbers posted, there was a significant market rebound in March, with a 30.4% month-on-month increase, as 55,731 property settlements were completed nationally.
PEXA’s Chief Economist, Julie Toth, commented: “Although sale settlements in the March 2023 quarter trended downwards, we have started to see signs of a trough in volumes. Sale settlements bouncing back in March indicates very strong demand for housing, despite ongoing interest rate rises.”
Residential property highlights
- QLD recorded 40,235 sale settlements in the quarter. The state retained its top spot once again – eclipsing the traditionally strong NSW and Victoria markets.
- Meanwhile, NSW (-22.6%) and VIC (-19.7%) experienced the largest declines in residential sale settlements. The two most populous states experienced sharp drops from the previous quarter.
- Settlements in WA dipped by the smallest margin nationally. Volumes were -6.9% lower compared to the previous quarter.
Commercial property highlights
- VIC posted 2,462 commercial sale settlements in the March 2023 quarter, ahead of Queensland with 2,192 and NSW which recorded 1,798.
- QLD saw the smallest drop in settlement volumes, down 12.3% on the December 2022 quarter. Of the 2,192 transactions recorded in the state, there were twice as many in regional QLD compared to Greater Brisbane.
- NSW saw the highest investment in commercial property in the March 2023 quarter, with $6.1B was spent in the state.
You can access the full report here.