News release – 20 July 2022
Australia’s east-coast property market has powered through back-to-back record-breaking financial years, with more than 628,000 residential property sale settlements – worth an aggregate $554 billion – being completed in FY22, according to the latest report from PEXA Insights.
Despite these stellar results, there are clear signs the market has peaked, with a soft second half of the financial year having been observed.
The nation’s most populous states, Queensland, New South Wales and Victoria all experienced year-on-year volume growth for property sale settlements, with Queensland leading the way with 220,692 residential settlements, up almost 12% from FY21.
However, all three states experienced a noticeable decline in sale settlements from the first half to the second half of the financial year, coinciding with the Reserve Bank of Australia’s decision to lift the official cash rate.
The key trends across Australia’s east-coast for residential and commercial property in FY22
- Led the east-coast for growth in residential property, recording 220,692 property sale settlements (up 12% year-on-year) worth more than $148 billion (up 36% year-on-year).
- The state’s commercial property sector also posted strong results, with more than 11,000 settlements worth $24 billion being facilitated.
- Surfers Paradise, Newtown and Urangan all made the top 10 for postcodes that saw the highest number of residential settlements across the east-coast. The Surfers Paradise and Broadbeach postcodes combined for an aggregate sale settlement value of approximately $6 billion.
New South Wales
- Posted the highest aggregate value of residential settlements of all three states for the second year in a row, recording 206,052 settlements (up 1.5% year-on-year) worth $238.5 billion (up (29% year-on-year).
- The state’s commercial property sector saw 13% growth in sale settlements and led all states in aggregate value with $39.6 billion (up 61% year-on-year).
- Marsden Park placed third in the top 10 postcodes for volume of residential sale settlements and came in at number one for the aggregate value of settlements (more than $3.5 billion).
- Recorded 201,361 residential property sale settlements (up 8.6% year-on-year) worth more than $167 billion (up 35% year-on-year).
- The state led the east-coast for number of commercial property sale settlements with 13,696 (up 24% year-on-year), worth an aggregate of $34 billion (up 50% year-on-year). o Dandenong, Pakenham, Truganina and Epping took out the top four postcodes across the east-coast for total volume of commercial sale settlements.
- Truganina, Craigieburn, Point Cook, Cranbourne East and Clyde North all made the top 10 postcodes for volume of residential sale settlements.
According to PEXA’s Head of Research, Mike Gill: “Due to an extremely strong first half of the financial year, we have seen a record 12 months for residential and commercial sale settlements, both in volume and in value, across the east-coast of Australia.
“Queensland’s residential property market continued the strong momentum it has demonstrated over recent years recording the most sale settlements of any state in FY22, and both the New South Wales and Victorian markets have shown great buoyancy to also post record numbers in FY22. The commercial property sector across all three states also posted significant growth in both total volume and value.
“However, we have seen a noticeable decline in residential and commercial sale settlement volumes in the second half of FY22 compared to the first half across all three eastern states, with New South Wales and Victoria seeing the largest falls.
“Over recent months in particular, coinciding with rising interest rates, we have seen the residential property market move to a more historically ‘normal’ setting, following a period of significant growth and annual records.”
The latest PEXA Property Insights report can be accessed via: www.pexa.com.au/insights.