Queensland property market remains the strongest nationwide

Journal,  Journal,  Principals,  Salespeople

Queensland’s property market continues to thrive in 2021 as the only mainland state to record quarter-on-quarter growth in sales settlements for September. Queensland recorded a nationwide high of more than 59,000 property transactions, according to the latest Property and Mortgage Insights (PMI) Report from PEXA Insights

Having largely avoided extended COVID-19 lockdowns, the figures highlight the current confidence in the state’s property market – from both locals and interstate consumers.

Data in the PMI Report shows that Queensland facilitated more sale settlements for the quarter than the traditional sector powerhouse states of New South Wales and Victoria.

In the September quarter, more than $42 billion worth of property (up 93% year-on-year) was exchanged in Queensland. Greater Brisbane saw 62% growth year-on-year and Surfers Paradise came in sixth nationally for suburbs ranked by total number of sale settlements in the year to date.

Softening occurs elsewhere

This growth comes amidst a softening of Australia’s property market when compared to the previous quarter. Despite this, there were still a healthy 210,000 sale settlements completed nationally (up 34% year-on-year).

By comparison, the New South Wales property market was clamped by the extended COVID-19 restrictions, with 58,000 sale settlements (down 4% on the previous quarter, but up 29% year-on-year) worth more than $71 billion (up 80% year-on-year) processed.

These recent declines were even more evident in Greater Sydney where extended lockdown restrictions were implemented.

In a similar story to New South Wales, Victoria’s property market recorded 56,000 sale settlements (down 5% on the previous quarter, but up 34% year-on-year) worth more than $50 billion (up 79% year-on-year).

Insights show that both Greater Melbourne and Regional Victoria also experienced a decline in sale settlements from the previous quarter. However, Greater Melbourne experienced the sharper drop likely due to the extended lockdown restrictions implemented across the region.

Interestingly, there are signs the property markets in both Western Australia and South Australia may have peaked given both states witnessed a quarter-on-quarter decline of sale settlements in the absence of lockdowns.

Western Australia recorded 23,000 sale settlements (down 4% on the previous quarter, but up 36% year-on-year) worth $13 billion (up 62% year-on-year) and South Australia recorded 14,000 sale settlements (down 8% on the previous quarter, but up 20% year-on-year) worth more than $7 billion (up 35% year-on-year).

Nationally, the good news is that while all states, bar Queensland, experienced quarter-on-quarter declines in overall sale settlements, volumes remained well ahead of those recorded for the same period in 2020.

Lending trends

The PMI report also analyses consumer lending and mortgage trends, with new loans declining nationally since 1 July 2021, following a similar trend to sale settlements. However, new loans were still up 39% year-on-year for August, suggesting consumer demand remains strong.

A state-by-state analysis of competition within the lending sector highlights a tale of two halves for Australia’s major banks. Australia’s top four banks have 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.

The Queensland property market has been going from strength to strength. It remains to be seen within the next PMI quarterly report whether the current growth can be sustained in the Sunshine State and if it will retain its position as Australia’s most in-demand market.

Find out more from PEXA here.

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