A pickup in home settlements over the last months of 2023 augur a positive outlook ahead, according to a new report released by property settlement platform PEXA.
PEXA’s 2023 Property Insights Report has found that residential settlement volumes grew across all price bands in the second half of 2023, with nearly $50 billion worth of residential property settled in December alone.
The premium segment of the residential market led the recovery with significant growth in settlement volumes recorded in the second half of 2023 for properties priced over $1M, across the eastern states.
Property settlement volumes for homes in the $1.5M- $2M and $2M+ price bands increased in the second half of 2023 (compared to the first half), rising 26.7 per cent and 27.3 per cent respectively in NSW, and 18.9 per cent and 23.5 per cent respectively in VIC.
At the lower end of the market, sale settlements in the sub $500,000 price band were also up across the eastern states. The volume of NSW residential sale settlements valued under $500,000 increased 11.2 per cent in the second half of 2023, with similarly priced VIC settlements also up by 17.0 per cent.
PEXA’s Head of Research Mike Gill noted that, when compared with the pandemic-related property boom of 2021 and 2022, the property sector experienced a decline in total settlement volumes last year.
“However, the recovery in settlement volumes in the latter months of 2023 suggest the market may have reached a turning point and buyer confidence is returning”, he said, adding that he fully expects sales volumes to recover further during 2024.
Looking across each of the five mainland states, New South Wales stood out from other states with the highest spend on residential property, surpassing $192 billion for the year.
However, it was Queensland that continued to lead the country for the third consecutive year on a volume basis, recording nearly 176,000 residential sale settlements in 2023.
Victoria experienced the largest fall in aggregate value, with a decline of 13.9 per cent in 2023, while over in Western Australia, the market remained relatively unchanged, showcasing its strength.
The PEXA report provides a comprehensive view of property sale settlement trends in Australia for the 2023 calendar year, comparing settlement trends over the past four years, focussing on the five mainland states of NSW, Queensland, Victoria, WA and South Australia.
