The property market’s strength was underpinned by steady interest rates, a strong labour market, and a drop in headline inflation to 3.6% in March 2024, down from 7% a year earlier
A mixed but generally strong Australian property market has been observed in the quarter to March 2024, with PEXA Group reporting a moderation in refinancing activity and a robust recovery in property settlements across all mainland states.
The property market’s strength was underpinned by steady interest rates, a strong labour market, and a drop in headline inflation to 3.6% in March 2024, down from 7% a year earlier.
Queensland led with 43,084 settlements, followed by New South Wales and Victoria. NSW showed the strongest annual growth in sales volumes at 10.9% YoY.
The total value of property transactions in the March quarter touched $150.6 billion, a 17.2% rise from the same period the previous year. NSW led in total sales value at $54.5 billion.
As per PEXA Group’s latest Property and Mortgage Insights data, the total value of refinanced properties was $45 billion, with NSW again leading at $17.4 billion.
Meanwhile, the overall number of new loans dropped from the previous quarter, reflecting a normal seasonal effect. However, the year-on-year rise indicates the market’s recovery in 2024. Queensland led with 29,831 residential new loans, followed by Victoria and NSW.
Queensland also saw the highest growth in median loan values, with a 13.5% rise in Greater Brisbane and 8.9% in regional areas. Refinancing peaked in September 2023 due to the expiration of many fixed rate loans that began in 2020-21. The current moderation aligns with historical trends.
PEXA Group’s chief economist Julie Toth noted that despite high inflation and interest rate pressures in 2023, property sales volumes recovered quickly and have remained buoyant, suggesting strong market demand and buyer confidence.
The moderation in refinancing activity was expected following the earlier peak that had been driven by fixed rate loan expirations, Toth said. Steady interest rates, solid employment and declining inflation are supporting demand for housing and suggest a positive outlook for the remainder of 2024.
She added: The March 2024 quarter experienced a seasonal drop in both property and loan volumes, compounded by a higher than usual number of public holidays due to an early Easter calendar. This seasonal impact was expected and does not detract from the recovery trend we have observed over the last year.
The post Australia property market resilient in first quarter of 2024 first appeared on Invest for Property London, Buy Residential property UK.
Credit: Source link
