- PEXA reports QLD completed 194,849 sale settlements in 2022.
- In NSW sales declined 18.1% to 177,555 sale settlements.
- Queensland has been the busiest housing market since 2021.
Despite rising interest rates and property prices starting to ease, Queensland still continues to attract buyer interest and ended 2022 with the highest sales volume of any state.
According to PEXA’s latest Property Insights report, Queensland reported 194,849 completed sale settlements in 2022.
Volumes in New South Wales were softer during 2022, with sales declining 18.1 per cent over the course of 2022 to 177,555 settlements.
Victoria also saw a fall in transactions to 185,096, while Western Australia (91,051) and South Australia (51,215) saw slightly lower volumes compared to the prior year.
Queensland has been the busiest housing market since 2021 as people fled the harsh lockdowns in Victoria and New South Wales and elected to move to the Sunshine State.
Overall, Australia recorded more than 730,000 property sale settlements last year, worth $674.5 billion, however, settlements were down 11.8 per cent compared to 2021.
Normal markets return
PEXA chief economist Julie Toth said the annual decline in sales suggests markets are returning to a more “normal” level of activity compared to the boom times.
Ms Toth said “Settlement volumes, along with pricing and other key market activity metrics, were driven to temporary highs during and immediately after the pandemic, led by the ‘Great Relocation’.
“This market activity was encouraged by record low interest rates and a range of government stimulus programs that boosted demand for more housing,” she said.
Ms Toth said during the pandemic many people separated which also meant more pressure on the housing market and increased sales volumes.
“All of these contributed to stronger demand for housing, despite national population growth plunging towards zero,
“Looking ahead, the Australian property market will continue to moderate through 2023, in response to the sharpest tightening of monetary policy in Australian history, as well as other cyclical factors,” she said.
Immigration to boost sales
Ms Toth said immigration is shaping up as a key driver of sales volumes this year.
“Net migration is returning to Australia for example, but its likely timing and exact composition is not yet clear,” she said.
She said the impending mass return of international university students to Australian cities could provide a sudden and unexpected boost to rental housing demand.
“On the supply side, the climate-related escalation in weather events could further deplete housing stocks in some locations, delay essential repairs and add to the pipeline of new dwellings waiting to be built” Ms Toth concluded.
