2023 lays the foundation for success in 2024
Australia’s total property sale settlements in the December quarter ended the year on a high, according to the latest data from PEXA.
PEXA stated that the December quarter for 2023 experienced a surge in buying and selling, signalling “a positive outlook ahead and a recovery of the Australian property market”.
According to the data, the December quarter hit the highest volumes of any quarter throughout 2023, at more than 188,000 settlements.
The PEXA Property Insights Report 2023 indicated that nearly $50 billion worth of residential property was settled in December alone.
Looking to the December quarter, more than 178,000 sale settlements were recorded – the highest quarter of the year, and also surpassing the December 2022 quarter, when just over 163,000 sale settlements took place.
It was revealed that residential sale settlements in the December quarter experienced a new standard, with premium property transactions above $1 million across the eastern states touted as leading market recovery.
Homes in the $1.5–$2 million price range saw settlement volumes rise 26.7 per cent (NSW) and 18.9 per cent (Victoria). Homes in the $2 million-plus price range rose 27.3 per cent (NSW) and 23.5 per cent (Victoria).
PEXA’s report stated: “This momentum suggests buyers expect interest rates will stabilise in 2024, giving them more confidence in moving forward with property purchases.”
Looking to the states, and in 2023, Queensland property settlements valued at over $2 million increased the most out of all the states, by a whopping 38.1 per cent.
PEXA head of research, Mike Gill, highlighted that Queensland is leading the country for the third consecutive year on a volume basis, while “Victoria experienced the largest fall in aggregate value, with a decline of 13.9 per cent”.
Western Australia proved to be “the most resilient state in the country, recording over 84,000 settlements” in 2023.
PEXA noted it as the only state that has been able to maintain the high number of sale settlements that was seen throughout the COVID-19 period.
Looking ahead, Mr Gill commented that the recent recovery in settlement volumes suggests “the market may have reached a turning point and buyer confidence is returning”.
“Sales volumes are likely to recover further during 2024,” he added.
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