New home loans – mostly residential – also rise
The Australian property market saw significant growth in sales and mortgage activity in the third quarter of 2024, according to the latest PEXA Property and Mortgage Insights report.
Across Australia’s mainland states, there were 183,288 property settlements totalling $178.3 billion in value from July to September, marking an 11.1% increase in transaction volume and a 19.8% rise in value compared to the same period in 2023.
Queensland led the country with the highest number of residential settlements, while Brisbane maintained its position as the nation’s second most expensive capital city, after Sydney.
All mainland capital cities and regional areas recorded near double-digit growth in settlement volume over the year, with regional Western Australia posting standout growth of 19.5%. In New South Wales, Greater Sydney postcodes dominated residential settlements, with strong activity in growth areas such as Marsden Park and Oran Park in the city’s west.
Melbourne’s outer suburbs, particularly Craigieburn and Tarneit, showed robust performance in Victoria, while in Queensland, coastal postcodes were the most active. South Australia’s top-performing areas included Munno Para West, Andrews Farm, and Mount Barker in the Adelaide Hills.
The PEXA report also showed a rebound for the commercial property market after a slow start to 2024. Commercial property settlements rose by 10.3% in New South Wales and 10.7% in Victoria, with a combined transaction value across NSW, VIC, and Queensland reaching $18.9 billion — a year-on-year increase of 8.5%.
The mortgage market reflected this momentum, with a 16.2% rise in new home loans issued, bringing the total to 137,186. Residential property accounted for over 96% of these loans.
Queensland led in new residential loans, recording 36,078 new loans, up 19.7% from the previous year, followed by New South Wales with 35,407 loans, a 17.2% increase.
PEXA Group chief economist Julie Toth (pictured above) attributed the growth in part to a persistent imbalance between housing supply and demand, which has driven more buyers toward existing homes and pushed property prices higher.
“New housing supply, including homes and apartments, has continued to lag behind demand nationally,” Toth said. “High labour and material costs are lengthening construction timelines and adding to the rising cost of new builds, leading more buyers to seek existing properties.”
Toth also pointed to strong population growth and declining household sizes as key factors supporting housing demand. While consumer sentiment towards mortgages is showing cautious improvement, she noted that many buyers remain wary of debt in the current environment.
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