Queensland property settlements topped the nation

Property settlement platform PEXA’s Property Insights Report FY22 revealed it was a strong overall year for Australia’s eastern seaboard states which was led by the first half of the year.

In Queensland, the sunshine state recorded more than 220,000 property settlements worth $148 billion - marking an 11.8 per cent increase year-on-year.

The same state also recorded the majority of its ‘top-10’ postcodes for residential sale settlements were regional, which was a stark contrast to Victoria and NSW which saw the majority of its settlements in greater capital city areas.

It comes as Queensland recorded the largest number of interstate arrivals out of all states during the first 12 months of COVID-19, according to a PropTrack report. 

PropTrack's Regional Australia Report revealed regional Queensland reported a net internal migration figure of 16,316 in the 12 months to March 2021, while Greater Brisbane experienced an increase of 14,469 new residents.

PEXA’s head of research Mike Gill said Australia had seen a “record 12 months” for residential and commercial sale settlements, both in volume and in value, across the east-coast of Australia.

“Queensland’s residential property market continued the strong momentum it has demonstrated over recent years recording the most sale settlements of any state in FY22,” Mr Gill said.

“Over recent months in particular, coinciding with rising interest rates, we have seen the residential property market move to a more historically ‘normal’ setting, following a period of significant growth and annual records.”

Victoria also showed strong results recording an 8.6 per cent increase in residential property settlements to 201,361 worth $167 billion. While NSW lagged slightly behind with a marginal increase of 1.5 per cent in settlements, but saw the highest aggregate value for the second year running at $238.5 billion.

The impact of rising interest rates weighed on the market, with all eastern states recording a noticeable decline in residential sale settlement volumers in the second half of FY22.

NSW housing market led the downturn with a 17.8 per cent drop in settlements from the first half to just under 93,000 transactions worth $111.8 billion - which marked the biggest decline in aggregate settlement value (down 11.8 per cent).

Queensland reported a 12.8 per cent drop in the second half of FY22 worth $71.8 billion and Victoria dropped 5.9 per cent to $84 billion in residential property sales.

Similarly, the commercial property sector saw a decline in the second half of the year with NSW shedding 17.4 per cent in settlements - which led to a 20 per cent aggregate value fall.

The same state overall saw an increase of 60 per cent for the year worth $39.6 billion in commercial sales.

Queensland recorded more than 11,000 settlements worth more than $24 billion, while Victoria led the east-coast for a number of commercial property sale settlements with 13,696 (up 24 per cent year-on-year), worth an aggregate of $34 billion (up 50 per cent year-on-year).

[Related: Queensland recorded highest interstate migrants during pandemic:REA]