- QLD recorded 59,000 settlements during the quarter - up 3%
- Nationally, sale settlements are still up 93% year on year
- NSW and Victoria are down by 4% and 5% respectively
As we have reported previously on The Property Tribune, the spring market started softly this year nationally – although it has shown signs it is now in motion.
Data from Property Exchange Australia (PEXA) has shown that Queensland was the only mainland state to record quarter-on-quarter growth in property sale settlements during the first quarter of the current financial year.
The Property and Mortgage Insights report showed more than 59,000 settlements were processed across the state – 3% higher than the previous quarter and 42% higher year on year. This is worth more than $42 billion, up 93% year on year.
Greater Brisbane experienced 62% year-on-year growth from August, with Surfers Paradise ranked 6th nationally, in terms of suburbs ranked by the total number of sales settlements year-to-date.
Nationally, while there was a softening of the market compared to the previous quarter, 210,000 sale settlements were still recorded – up 34% year-on-year, worth around $183 billion (up 78% year-on-year).
Total Sale Settlements – National
In terms of New South Wales, the property market continues to be dampened by extended restrictions with over 58,000 sale settlements recorded, down 4% compared to the previous quarter, but up 29% year-on-year. This is worth more than $71 billion – up 80% year on year.
For Victoria, this is down 5% from the previous quarter, but up 34% year-on-year.
“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,” explained PEXA Insight’s head of research, Mike Gill.
“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.”
Mike Gill, PEXA Insight head of research
Total Sale Settlements – States
The report noted that the property markets in both Western Australia and South Australia may have peaked.
Both states saw a quarter-on-quarter decline despite the lack of restrictions.
In WA, sale settlements were down 4% compared to the previous quarter, but still up by 36% year-on-year. For South Australia, it was down 8% but up 20% year-on-year.
“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,” added Mr Gill.
The report also provides an analysis of consumer lending and mortgage trends, with new loans declining nationally since July this year. This follows the trend seen with sale settlements.
Nonetheless, consumer demand remains strong, with new loans still up 39% year-on-year for August.
When analysing competition among the lending sector, there are two narratives for the major Australian banks, according to Mr Gill.
“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,” he said.