This article is from the Australian Property Journal archive
LENDERS and practitioners have collaborated to deliver higher rates of settling property sales on their scheduled dates in the September quarter compared to the June period.
The second quarterly On-Time Settlement Report from digital property settlements platform PEXA showed Australian lenders were successful in settling 88.2% of national property sales on the first scheduled settlement date via the PEXA Exchange over the three months, up from 86.1%.
“A 2% SFD increase from the previous quarter may not sound significant, but in fact that equates to hundreds more home buyers across the nation experiencing a more seamless experience moving in and out of their properties,” said Marielle Yeoh, PEXA’s chief marketing and financial institutions officer.
Practitioners, the conveyancers and solicitors representing buyers, successfully settled 87.5% sales on the first scheduled settlement date, an increase from 85.6%.
Home buyers in Queensland were provided the most surety for their property settlement in the September quarter, with lenders in the state recording an average settled first date (SFD) rate of 90.1% and practitioners posting an average SFD of 90%. Victoria came in at a close second with 89.3% and 88.1% respectively.
PEXA grouped lenders into six categories: major banks; major bank subsidiaries, other domestic banks; customer owned banks; foreign authorised deposit-taking institution (ADIs) and non-ADIs. Nationally, foreign ADIs performed strongest, with an average SFD of
91.3%, followed by customer-owned banks on 90.5%. These two lender segments held a leadership position in most states, however they made up just 8.5% of the total settlements analysed in the quarter.
Major banks continued to perform above the national average, settling 89.2% of properties on the first date. Major bank subsidiaries were slightly lower at 88.6%. These two segments accounted for 64.5% of total settlements.
