00:00 For 2023, the PECSA research shows that across those three states, for residential purchases,
00:09 28.5% of them were purchased without a mortgage attached.
00:13 And that's actually up from previous years, which was sitting at around 25%.
00:18 Now, the locations, the postcodes, types of properties that are involved in these transactions
00:26 states that it's mainly due to older Australians who are relocating from an existing home.
00:33 So it's suggesting that those that are already in the market, who already own property, are
00:39 able to transfer and move around without taking out a mortgage.
00:43 And they are less vulnerable and less impacted by the rate rises that we've seen over this
00:48 period.
00:49 The postcodes are all for the top areas where these transactions are taking place, and mainly
00:56 in regional areas.
00:57 So it's the classic sea change, tree change locations, particularly in Queensland, where
01:06 we saw 29% of all residential purchases conducted without a mortgage in 2023 in that state.
01:14 So Surfers Paradise was the top postcode, but also places like Russell Island, Magnetic
01:22 Island, Broadbeach, and similar locations in Victoria and New South Wales.
01:28 When we think about the time period that these data cover from PEXA, 2022, 2023, we did see
01:35 interest rates rise very strongly.
01:38 And initially, we did see prices fall in response to that.
01:41 We saw transaction volumes retrace.
01:44 But the recovery happened remarkably quickly and while rates were still rising, and that's
01:50 unusual.
01:51 And we now think that part of the story of the resilience of the property market and
01:56 the recovery that we've seen is actually being driven by this quite large cohort of buyers
02:03 who are able to transact without taking out a mortgage and without that direct exposure
02:09 to interest rate rises.
02:10 [BLANK_AUDIO]
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