Home settlements pass double-digit decline: PEXA

NSW has led the decline in Australia’s residential sales settlements in both property sales volume and aggregate value, PEXA’s Property Insights Report for the September quarter has revealed.

The report, issued by the property settlement and transaction company, noted a marked decline quarter-on-quarter.

It found that Australia’s most populous state recorded 41,357 residential sales settlements (-13 per cent quarter-on-quarter) worth an aggregate value of $47.7 billion (-16.8 per cent quarter-on-quarter).

This indicated that NSW was experiencing “…a faster market slowdown than any other region,” the online property exchange network explained.

Elsewhere, in a trend first observed during the middle of the pandemic, Queensland’s property market has once again topped the nation for total volume for the quarter, recording 46,621 residential sale settlements (-10.9 per cent quarter-on-quarter) worth an aggregate value of $32.3 billion (-11.8 per cent quarter-on-quarter).

Victoria had a modest decline in both volume of residential property sales settlements with 44,255 (-11.8 per cent quarter-on-quarter), and residential aggregate value of $37.8 billion (-10.2 per cent quarter-on-quarter); however, it recorded almost 3,000 more sales settlements for the quarter than its larger neighbour NSW.

Western Australia’s property market has recorded a combined 21,648 residential and commercial sale settlements (-11.4 per cent quarter-on-quarter), with an aggregate value of $12.9 billion (-10.9 per cent quarter-on-quarter).

The results come following six consecutive cash-rate increases, as the Reserve Bank of Australia (RBA) attempts to tackle rising inflation.

National commercial market still faring well

“The largest and fastest rate rises announced by the Reserve Bank of Australia since the mid-1990s are certainly starting to have an impact, with the Australian residential property market’s record run for the past few years well and truly over,” said PEXA’s head of research, Mike Gill.

“Although most states saw double-digit declines for the quarter across both total volume and aggregate value of sale settlements, we must remember that we are coming off record high levels of activity.

“Also, we are not seeing the same level of residential buyer trepidation from the commercial sector.

“Although commercial settlement volumes were down in some states, the national commercial market performed relatively well in the September quarter, with Victoria posting an increase of 1.2 per cent in settlement volumes.”

Surfers plus others still in growth corridor

The PEXA Property Insights Report also dives into postcode-level activity, with outer metropolitan growth corridors such as Truganina and Craigieburn in Victoria, and Marsden Park in NSW continuing to post strong residential sale settlement results.

Notably, Surfers Paradise, Queensland, also continued its strong momentum seen over the past two years, PEXA confirmed.

The “Top 10” postcodes for residential sale settlements, total volume, for the September 2022 quarter were:

1. 3029 (Truganina)
2. 2765 (Marsden Park)
3. 3064 (Craigieburn)
4. 4217 (Surfers Paradise)
5. 3978 (Clyde North)
6. 3030 (Point Cook)
7. 4350 (Newtown)
8. 3024 (Wyndham Vale)
9. 3335 (Thornhill Park)
10. 4551 (Nirimba)

The “Top 10” postcodes for commercial sale settlements, total volume, for the same time frame were:

1. 2000 (Sydney)
2. 3029 (Truganina)
3. 3810 (Pakenham)
4. 3175 (Dandenong)
5. 4214 (Arundel)
6. 3000 (Melbourne)
7. 4740 (Andergrove)
8. 3153 (Bayswater)
9. 3074 (Thomastown)
10. 2650 (Wagga Wagga)

[Related: Queensland property settlements topped the nation]