East coast property leads way out of Covid-19 pandemic, says digital property platform PEXA

Queensland has officially had ‘an incredible year’ in property sales according to new data, which has revealed the staggering number of homes that have traded hands in the past year, for a total of $106 billion.

Queensland recorded 203,000 property sale settlements between July 2020 and June this year, a 37 per cent lift year-on-year, as more than $106bn worth of property settled.

East coast property markets are leading the way out of the Covid-19 pandemic according to data released by digital property settlement platform PEXA.

The group found that between July 2020 and June 2021, Queensland led the east coast for growth, as its southern rivals were harder hit by the coronavirus pandemic.

Queensland recorded 203,000 property sale settlements, a 37 per cent lift year-on-year, as more than $106bn worth of property settled. The state had not outperformed Victoria in sale settlements for over a decade and greater Brisbane matched the state’s regional property market, bucking historical trends.

Low interest rates, government stimulus and increased buyer interest fuelled demand, while PEXA senior research manager Mike Gill noted the relative decline of activity in the Victorian market.

“From being the standout leader in volume for property sale settlements in fiscal 2020, 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.

“The Sunshine State has had an incredible year in property, with Greater Brisbane jumping more than 50 per cent on last year’s figures, and the rest of Queensland delivering significant year-on-year gains.”

Chris and Melissa Ogden, with their pet listed their Queenslander in Camp Hill for sale this year. Picture: Lyndon Mechielsen

There were solid results in NSW with settlements up 26 per cent, while Victoria’s 10 per cent year-on-year growth was propped up by strong results in regional and commercial sectors.

“Most notably, we have seen a trend across the east coast of greater activity in our regional areas, with sale settlements outside of capital cities up 36 per cent in NSW, 28 per cent in Victoria, and 23 per cent in Queensland year-on-year,” Mr Gill said.

NSW also experienced strong gains in property sales, recording 218,000 settlements, a 26 per cent lift year-on-year, worth more than $186bn.

The state’s residential sector accounted for more than 84 per cent of all sale settlements, even though commercial sales were up more than 30 per cent year-on-year.

Victoria’s property market saw softer gains in light of the state’s second extended Covid-19 lockdown, recording 198,000 property settlements, an 11 per cent year-on-year lift, as properties worth more than $127bn settled.

Regional Victoria bolstered the state’s sales figures with 28 per cent year-on-year growth in settlements, while lockdown-hit greater Melbourne experienced a 2 per cent decline year-on-year.

The PEXA analysis also showed that 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 homeowners are moving to regional areas to take advantage of lower priced properties, flexible working arrangements and a change in lifestyle,“ the report said.

“There also appeared to be greater consumer preference towards major banks for new loans in NSW and Victoria due to highly competitive rates, particularly for fixed rate loans and special offers, such as cash back 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 said.