Property market resilient in Q1 despite refinancing dip

Transactions total $150.6 billion in the March 2024 quarter

Property market resilient in Q1 despite refinancing dip

A mixed but generally resilient 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 resilience was underpinned by stable interest rates, a strong labour market, and a fall 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% year-over-year.


The total value of property transactions in the March quarter reached $150.6 billion, a 17.2% increase from the same period the previous year. NSW led in total sales value at $54.5 billion.


According to 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 declined from the previous quarter, reflecting a normal seasonal effect. However, the year-on-year increase 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% increase 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 (pictured above) noted that despite high inflation and interest rate pressures in 2023, property sales volumes recovered quickly and have remained buoyant, indicating 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. “Stable interest rates, solid employment and falling inflation are supporting demand for housing and suggest a positive outlook for the remainder of 2024.

“The March 2024 quarter experienced a seasonal decline 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 anticipated and does not detract from the recovery trend we have observed over the past year.

“The expiration of a large volume of fixed rate loans, along with the cessation of refinancing incentives by lenders, has led to a notable slowdown in refinancing activity. From here, the stable cash rate at 4.35% since November 2023 is likely to support an increase in new mortgage issuances as the year progresses.”

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