Queensland still the busiest sales market in 2022

Queensland rose again as the busiest housing market last year, reporting the highest volume of sales settlement among other states and territories according to PEXA’s latest Property Insights report.

Over the year, Queensland reported 194,849 completed sale settlements. Queensland has been the busiest housing market since 2021.

On the other hand, New South Wales witnessed an 18.1% decline on volume on an annual basis, down to 177,555 sale settlements.

Overall, Australia recorded more than 730,000 property sale settlements last year, with an aggregate value of $674.5bn.

While settlements were down 11.8% compared to the levels seen in 2021, the property market seemed to have grown significantly relative to pre-pandemic levels — up 24% in sales settlement volume since 2019.

Looking at a four-year period, the aggregate value of sale settlements almost doubled, substantially up from $390.9bn in 2019.

PEXA chief economist Julie Toth said the annual decline in sales settlement indicate a reversion to more “normal” market conditions following the boom over the last two years.

“Settlement volumes, along with pricing and other key market activity metrics, were driven to temporary highs during and immediately after the pandemic, led by the ‘Great Relocation’,” she said.

“This market activity was encouraged by record low interest rates and a range of government stimulus programs that boosted demand for more housing.”

There are other unusual and interesting trends that influenced market activity, including rising divorce and separation rates, a sharp rise in interstate migration, and a further decrease in people per household

“All of these contributed to stronger demand for housing, despite national population growth plunging towards zero,” Ms Toth said.

“Looking ahead, the Australian property market will continue to moderate through 2023, in response to the sharpest tightening of monetary policy in Australian history, as well as other cyclical factors.”

Ms Toth said there are several variables that might influence how the economy and the housing market perform over the year.

“Net migration is returning to Australia for example, but its likely timing and exact composition is not yet clear. The impending mass return of international university students to Australian cities could provide a sudden and unexpected boost to rental housing demand,” she said.

“On the supply side, the climate-related escalation in weather events could further deplete housing stocks in some locations, delay essential repairs and add to the pipeline of new dwellings waiting to be built.”

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Photo by ralfskysegel from Pixabay.