Buyers spend $178 billion in housing boom,
Homebuyers have spent over $178 billion on residential real estate nationwide in just three months.
Notably, most of these transactions occurred in Queensland, reflecting the region’s growing appeal.
Recent data from digital settlements platform PEXA reveals that 183,288 settlements were finalized in the September quarter.
This marks an impressive 11 percent increase compared to the same period last year.
Furthermore, nearly $28 billion, which is 20 percent more, was spent on properties during this time.
In contrast, only $148.9 billion worth of transactions were finalized in the same quarter a year prior.
Queensland recorded the highest number of residential settlements in the country, reflecting its growing popularity among homebuyers.
Additionally, Brisbane remains Australia’s second most expensive capital city, with a median sales price now reaching $780,000.
This price is significantly behind Sydney, where the median sales price stands at $1.03 million.
During the quarter, nearly $40 billion was spent on residential property in Queensland.
The figures indicate that 48,361 home sales were finalized in the three months ending in September.
PEXA Group’s chief economist, Julie Toth, noted that strong population growth supports sustained demand for housing in Queensland.
Furthermore, analysis by .id (Informed Decisions) reveals that New South Wales lost 31,183 residents in the year ending in March.
Most of these individuals relocated to Queensland, which gained 30,930 new residents during the same period.
“Queensland’s population growth composition strongly favors homebuyers,” Ms. Toth emphasized in her comments.
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“While New South Wales and Victoria attract the majority of overseas migrants, these individuals are primarily international students and temporary arrivals.
Consequently, they tend to rent rather than purchase homes, impacting the housing market dynamics in these states.
Victoria ranked as the nation’s third busiest state overall, recording 44,482 residential settlements in the September quarter.
Additionally, the data indicates that 76 percent of property settlements in Victoria involved a mortgage.
This percentage represents the second highest rate in the country, following Western Australia.
Furthermore, it serves as a key indicator of first-home buyers compensating for the absence of investors in the market.”
“The trend we observe in Victoria shows that sales are highly concentrated in specific areas,” Ms. Toth explained.
“In contrast, other states exhibit more dispersed sales across a wider geographic area,” she added.
“Many of these sales will likely be from first-home buyers.
These individuals purchasing their own homes are more inclined to secure a mortgage compared to investors.”
The two postcodes with the highest number of home sales across all states were located in Victoria’s first-homebuyer hotspots.
Tarneit and Craigieburn each recorded over 1,000 settlements during the three-month period.
In New South Wales, the top ten postcodes for residential settlements were all situated within Greater Sydney.
Notably, areas like Marsden Park and Oran Park in Sydney’s west continue to attract substantial interest.
This interest is largely due to the large-scale greenfield housing developments in those regions.
In Queensland, the busiest postcodes included Newtown in Toowoomba, which had 902 sales, and Surfers Paradise with 859.
Meanwhile, in South Australia, the leading areas were the outer suburbs of Adelaide, specifically Munno Para West and Andrews Farm.
Additionally, Queensland recorded the highest volume of new home loans taken out during the quarter, totaling 37,797 loans.
Following closely, New South Wales had 35,407 new home loans approved in the same period.
Mark Costello from iThink Property in Toowoomba expressed that he was not surprised by Newtown’s high number of residential settlements.
“The suburb is highly sought after by first homebuyers, investors, and families seeking homes near the CBD,” Mr. Costello stated.
“It remains very affordable and holds potential for future capital growth,” he added.
Ms. Toth mentioned that research indicates demand for new housing consistently exceeds supply.
As a result, more buyers are actively seeking existing properties in the market.
“Growth in new housing supply, including both houses and apartments, has struggled to keep pace with national demand,” she explained.
“New homes are now taking longer to build and are costing significantly more than in previous years.
High labor and material costs have contributed to the rising prices of new constructions,” she noted.
These capacity constraints are driving more buyers towards existing homes, consequently pushing home prices higher.
