Records keep tumbling in east-coast property boom

According to the report, Queensland was the standout performer among the eastern states, with property sale settlements rising 37.1 per cent to over 203,100 in FY21.

NSW recorded the highest settlement volumes in the east coast of almost 218,700, marking a 25.8 per cent rise.

Held back by lockdowns, Victoria lagged behind at almost 199,000 settlements, representing an 11.7 per cent rise.

According to PEXA’s senior research manager, Mike Gill, Australian property sales have been fuelled by low interest rates, government stimulus and increased buyer demand led by individual state’s wins on the health front.

“From being the standout leader in volume for property sale settlements in FY20, we have witnessed the demonstrative impact the pandemic has had on the Victorian property market, with both New South Wales and, in particular, Queensland recording comparatively bumper year-on-year numbers across both metropolitan and regional areas,” he said.

PEXA’s PMI report also analyses consumer lending behaviour, with FY21 numbers suggesting regional buyers were less likely than city buyers to fund their new purchase with a loan.

“Close to 80 per cent of capital city settlements procured were funded with a new loan, compared to only 66 per cent for regional settlements, suggesting metropolitan home owners are moving to regional areas to take advantage of lower-priced properties, flexible working arrangements and a change in lifestyle.”

Additionally, the report revealed greater consumer preference towards the major banks for new loans in NSW and Victoria, with the big four banks securing over 1,850 more new loans in May 2021 in Victoria.

However, non-major banks grew their positive net position in Queensland during the second half of 2020 and into 2021, particularly Suncorp and Bank of Queensland, the research showed.

“There also appeared to be greater consumer preference towards major banks for new loans in New South Wales and Victoria due to highly competitive rates, particularly for fixed rate loans and special offers, such as cashback incentives. Queensland consumers bucked this trend, with the gap narrowing in favour of the non-major lenders within the state from January 2021,” Mr Gill concluded.