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Hammer time: Buying frenzy puts Queensland at centre of $100b property boom

Business

More than $100 billion in real estate sales were recorded in Queensland over the past financial year, according to a report from property settlement company PEXA.

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The report found that Queensland was the “standout performer’’ among the eastern states which collectively recorded sales of more than $400 billion for the financial year.

More than 203,000 settlements were recorded in Queensland during the financial year so far, an increase of 37 per cent, leading to $106.8 billion in sales, an increase of 44 per cent.

It was the first time in a decade that Queensland had outperformed Victoria in sale settlements and May was when the market went over the top. That was when PEXA recorded monthly totals up more than 70 per cent in Queensland and NSW.

PEXA also found that Greater Brisbane recorded a 52 per cent increase in settlements compared with the lockdown-effected Greater Melbourne which had a 2 per cent decline from the 2019-2020 financial year. There were also 102,000 sales recorded in regional Queensland.

Outside of Brisbane the biggest volume of sales was recorded in Surfers Paradise, Southport, Maroochydore, Buderim and Coomera.

PEXA’s senior research manager Mike Gill said the results highlighted the economic impact the COVID-19 lockdowns had on Melbourne.

“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,’’ Gill said. 

“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 New South Wales, 28 per cent in Victoria, and 23 per cent in Queensland year-on-year,” Gill said. 

PEXA’s PMI report also analyses consumer lending behaviour, with 2021 numbers suggesting 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. 

“There also appeared to be greater consumer preference towards major banks for new loans in New South Wales 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.

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