Australia’s record property market run has come to an end, as settlements — both in volume and value — declined over the third quarter of 2022.

PEXA’s latest report showed that New South Wales posted the biggest decline in sales volume and value.

Over the quarter, the state recorded a 13% drop in residential sales settlements to 41,357 and a 16.8% drop in value to $47.7bn. This signals that the nation’s most populous state is seeing a faster market slowdown than any other region.

Meanwhile, Queensland maintained its standing as the busiest state — this was despite the 10.9% fall in its sale settlement volume to 46,621 and the 11.8% decrease in value to $32.3bn.

In Victoria, settlement volume went down 11.8% to 44,255 but overtaken New South Wales by around 3,000. Settlement values in Victoria also decreased 10.2% to $37.8bn.

Conditions remained resilient in Western Australia despite the 11.4% decline in settlement volume to 21,648 and the 10.9% drop in value to $12.9bn.

PEXA head of research Mike Gill said these declines were against the backdrop of rising interest rates and growing inflation.

“The largest and fastest rate rises announced by the Reserve Bank of Australia since the mid-1990s are certainly starting to have an impact, with the Australian residential property market’s record run for the past few years well and truly over,” he said.

Despite the double-digit declines posted across the state observed by PEXA, Mr Gill said it is crucial to note that these are coming off record high levels of activity.

“Also, we are not seeing the same level of residential buyer trepidation from the commercial sector — although commercial settlement volumes were down in some states, the national commercial market performed relatively well in the September quarter,” he said.

Photo by RODNAE Productions from Pexels.