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Solid year-on-year property refinance settlements and monthly commercial real estate settlement growth were highlights of the latest PEXA figures for December.
The market gains were mostly nationwide and closed out “a big year in property”, according to the digital settlement platform.
Noting that the strong December data followed a positive trend from the month prior, it found that sales settlements grew in “all but one capital city” in December, as 2022 “signed off on a high,” it concluded.
Refinance settlements were up in the year to December, with NSW 3.7 per cent higher year-on-year (YoY) and Queensland up by 9.1 per cent YoY.
In Victoria — though flat month-on-month — refinance settlements were 15.3 per cent higher YoY and in Western Australia refinance settlements were 23.6 per cent up over the same time frame.
The data comes off the back of lending data from the Australian Bureau of Statistics (ABS), which found that a new record had been set for external refinancing in November 2022, with more than $19.5 billion of loans changing lenders in that month.
Business settlement pushes forward
The latest PEXA data also shows that commercial settlements were on the up in some quarters.
Commercial settlement numbers on the east coast for the month showed notable growth, with NSW recording a 28.1 per cent settlement jump in December, Queensland up by 5.3 per cent month-on-month (MoM), while Victoria’s monthly numbers were up by 32.7 per cent.
NSW was the best performing for the second consecutive month, with total sales settlements up 9.2 per cent.
PEXA data showed that its “significant increase” in commercial property settlement volume — the highest spike observed in the past year — greatly contributed.
Residential settlements were up 8.2 per cent MoM; commercial settlements were up 28.1 per cent MoM; the Greater Sydney Area was up 7.6 per cent MoM while the rest of NSW was up by 11.5 per cent MoM.
Overall, the aggregate value of sale settlements in NSW rose 11.5 per cent MoM to $20.7 billion, while sale settlements with a new loan were up 8.8 per cent MoM.
Marginal dip but still strong in Queensland
Sale settlements in Queensland dipped marginally, down 2.7 per cent, but despite this, the Sunshine State remained the second most active market nationally, only narrowly pipped by neighbouring NSW, PEXA explained.
Greater Brisbane experienced back-to-back monthly growth in sales settlements, however, with the CBD market remaining popular, it added.
Ultimately, residential settlements were down 3.2 per cent MoM with Greater Brisbane Area up 1.1 per cent but the rest of Queensland down 5.9 per cent MoM.
The aggregate value of sale settlements in Queensland rose 4.6 per cent MoM to $12.6B, while sale settlements with a new loan were down 3.3 per cent MoM.
Settlements growth bounce-back in VIC
After a relatively quiet November, Victoria bounced back well to record 4.7 per cent growth in sales settlement volumes in December, with growth both in Greater Melbourne and regional areas, PEXA explained.
Notably, it witnessed a significant 32.7 per cent jump in commercial property settlements — the biggest increase seen nationally for the month.
Overall, residential settlements were up 2.9 per cent MoM and the Greater Melbourne Area was up 3.4 per cent MoM.
The rest of Victoria was up 8.1 per cent MoM while the aggregate value of sale settlements in Victoria rose 5.8 per cent to $14.7 billion MoM.
Sale settlements with a new loan were up 3.3 per cent, likewise.
Healthy and steady in WA
Highlights for Western Australia saw its settlements hold steady, with 0.2 per cent growth in sales settlements, led by gains in Greater Perth, while refinance volumes continued to remain healthy.
The Greater Perth Area was up 1.3 per cent MoM while the rest of WA was down 3.8 per cent MoM.
The aggregate value of sale settlements in WA rose 6.9 per cent MoM to $4.5 billion and sale settlements with a new loan were up 0.6 per cent MoM, PEXA stated.
[Related: Home settlement decline pivoted in November]
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