PEXA Insights sheds new light on the consumer settlement experience

PEXA Insights has today published its inaugural On-Time Settlement Report, developed to provide useful and timely insights to optimise the settlement experience for all stakeholders involved in a
property transaction, most importantly home buyers.

The quarterly report (1 April to 30 June 2022) reveals Australian lenders were successful in settling 86.1% of national property sales on the first scheduled settlement date via the PEXA Exchange.
Practitioners, the conveyancers and solicitors representing buyers and sellers, also performed strongly with 85.6% successfully settling sales on the first scheduled settlement date.

These national numbers refer to the five mainland states: New South Wales, Victoria, Queensland, Western Australia and South Australia. With more than 85% of property sales settlements within these
jurisdictions now settling via the PEXA Exchange, this new report provides a comprehensive window into the settlement experiences of Australians.

PEXA Insights has adopted the Settled First Date (SFD) metric to measure the performance of lenders and practitioners involved in settling property sales on their scheduled day, with more than 133,000
settlements analysed in the June 2022 quarter.

The report groups lenders into six key segments, with customer owned banks performing the strongest nationally, settling 89.2% of property sales on time, followed by foreign banks (88.2%),
major banks (87.5%), other domestic banks (87.3%), major bank subsidiaries (85.1%) and local non-bank lenders (79%). As outlined in PEXA Insights’ recent property mortgage report, competition for
new loans is very strong across all mainland states, with the major banks landing top spot for the quarter in Queensland, and foreign banks outperforming all others in Victoria and South Australia.

Marielle Yeoh, PEXA’s Chief Marketing and Financial Institutions Officer, said: “The PEXA On-time Settlement Report demonstrates the power of PEXA’s unique, timely and national data, providing a
comprehensive national insight into the settlement experience of Australian buyers and sellers. “This new metric is a significant step forward towards ensuring the industry is working together to deliver for the most important stakeholders in a property transaction – the buyer and seller. It is our mission to ensure settlements are finalised as planned, however we do acknowledge that settlement
dates are sometimes changed based on the request of a buyer and/or seller.

“It is in the best interests of all stakeholders within the property eco-system to get people into their homes on time. PEXA is continuing to work collaboratively with lenders and practitioners to drive the
benefits of digital conveyancing, identifying further system and process enhancements to ensure these high levels of Settled First Date continue”.

For more information, visit PEXA’s data and insights page.