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PEXA has revealed year-on-year increases in both residential and commercial new loan volumes for the September 2024 quarter.
Online settlements provider PEXA has a 16.2 per cent increase in the number of new loans issued during the September 2024 quarter.
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A total of 137,186 new loans were issued during the quarter, according to PEXA, with the vast major of loans for residential property.
The growth in new residential loans was highest in Queensland where 36,078 new residential loans represented a 19.7 per cent year-on-year increase. South Australia was the state with the next highest growth, with 8,174 new residential loans (up 17.3 per cent year on year).
PEXA also reported a surge in new commercial loans in NSW, Victoria, and Queensland, where 4,387 new loans represented a 15.2 per cent increase from the September 2023 quarter.
The online settlements provider attributed the results in part to modest economic growth, financial institutions anticipating rate cuts, and tentative improvements in consumer sentiment.
Julie Toth, PEXA chief economist, said strong population growth and small household sizes had contributed to underlying demand for housing.
“In terms of mortgage trends, consumer sentiment was tentatively improving in response to better conditions, but debt-related sentiment remained highly cautious,” Toth said.
“Our reports show that demand for new housing continues to outstrip supply, resulting in an increase in more buyers seeking existing properties and prices, with strong growth in both capital cities and regional areas.
“Growth in new housing supply – including housing and apartments – has continued to lag behind growth in demand for new housing nationally in most locations.
“New homes are taking longer and costing more to build than in the past. High labour and material costs have added to the rising price of new builds. These capacity constraints are pushing more buyers into the market for existing home and pushing home prices higher.”
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