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ISSUE 19
WHAT’S INSIDE 2-3
Insights: Refinances running hot nationwide
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Consumer: Lawyers, brokers and agents collaborating digitally
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Industry: The sector leaders spearheading innovation in property settlements
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Security: Backed your data up recently? Here’s why you should
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Australians refinancing property more than ever A record high 363,978 property refinances were recorded in 2021 nationwide, up 28% from 2020, according to analysis released by PEXA Insights, the research arm of PEXA – Australia’s leading digital property settlement platform. The PEXA Refinance Report found that all mainland states posted double digit year-on-year increases in 2021, with Victoria leading the way for total volume with 125,071 refinances (up 19% year-on-year). It was on the other side of the country where the strongest growth was seen however, with Western Australia’s tallying 29,850 refinances, up a huge 59% from 2020.
PEXA’s Refinance Index hit a peak of 168.3 points in October and remained above 160 points for the final three months of 2021. PEXA Insights’ Head of Research, Mike Gill, said: “Record low interest rates, combined with increased speculation within the market of imminent rate rises, has driven property owners to refinance right across the country, particularly in the second half of the year.
New South Wales experienced 29% in annual growth for refinances with 121,640, Queensland was up 36% year“We saw refinancing activity was on-year with 62,110 refinances, and most common in more affordable South Australia witnessed a were healthy 363,978 property refinances recorded areas within capital city postcodes, in 2021, upwith 27.9% on therefinances. prior year 27% spike 25,307 especially those with high levels of 363,978 property refinances were recorded The growth in 2021 came on top of 20.9% growth in 2020, highlighting how in 2021, up 27.9% on the prior year many property owners took the opportunity to secure a better deal on theirnew builds.” home loan during theinpandemic. The growth 2021 came on top of 20.9% growth in 2020, highlighting how The current high volume of refinances isopportunity well above historic levels, driven many property owners took the to secure a better deal on their by record low interest rates and the recent market speculation of pending home loan during the pandemic. interest The rate current rises. high volume of refinances is well above historic levels, driven
363,978 property refinances were recorded in 2021, up 27.9% on the prior year
2019 2020 2021
2021
2020
REFINANCES, TOTAL NATIONAL
2019
by record low interest rates and the recent market speculation of pending The growth in 2021 came on top of 20.9% growth in 2020, highlighting how many property owners took the opportunity to secure a better interest rate rises. deal on their home loan during the pandemic. The current high volume of refinances is well above historic levels, driven by record low REFINANCES, TOTAL NATIONAL interest rates and the recent market speculation of pending interest rate rises.
235,555 235,555 284,684 284,684 363,978 363,978
20.9% annual growth 20.9% annual growth
27.9%
annual growth 27.9% annual growth
Source: PEXA, Land Services SA
5 Source: PEXA, Land Services SA
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The Report also analyses the monthly net increase or decrease in mortgages for lenders, with non-major lenders moving to a strong winning position for refinances in 2021.
“December saw the major banks move into their weakest position for refinances in two years, falling behind non-major lenders in all mainland states except for Western Australia,” said Mr Gill.
REFINANCES, TOTAL VOLUME BY STATE
363,978 property refinances were recorded All2021, states double in upposted 27.9% on the prior year digit growth in refinances QLD The growth in 2021 came on top of 20.9% growth in 2020, highlighting how for 2021, led by WA which many property owners took the opportunity to secure a better deal on their REFINANCES, TOTAL VOLUME BY STATE REFINANCES, TOTAL VOLUME BY STATE home the pandemic. wasloan upduring 58.5%
125,071
121,640
105,464
94,697
88,959
75,201
62,110
45,683
121,640
94,697 75,201
38,112
125,071
121,640 The current high volume of refinances is well above historic levels, driven 105,464 Forrecord the third running VIC recorded themarket speculation of pending by lowyear interest rates and the recent 88,959 94,697 highest volume of refinances at 125,071, interest rate rises. closely followed by NSW on 121,640. 75,201 62,110
WA
45,683
2019 NSW
20,005
2020
QLD
2021 SA
16,701
NSW
88,959
QLD
2020
VIC
REFINANCES, TOTAL
2021
NSW
45,683
121,640
SA 16,582
20,005
25,307
94,697 16,701
29,850 18,835
75,201
WA QLD
SA 2019
284,684
VIC
2020
2021
REFINANCES, TOTAL VOLUME BY STATE
121,640
16,70
SA 2019
235,555
NSW
2021
25,307
105,464
18,835
VIC
2020
2020
2019
2019
16,582
29,850 38,112
20,005
16,582
62,110
38,112
REFINANCES, TOTAL NATIONAL REFINANCES, TOTAL VOLUME BY STATE 25,307
125,071
62,110
WA 45,683
20.9%
38,112
annual VIC
growth 125,071
16,582
20,0
105,464 NSW
Annual growth
NSW
QLD
SA75,201
2021
94,697
VIC
WA
88,959
363,978
19/20
25.9%
19.9%
20.6%
18.6%
12.8%
20/21
28.5%
36.0%
26.5%
18.6%
58.5%
QLD
27.9%
SA 2019
annual growth
62,110
45,683
38,112
16,582
Source: PEXA, Land Services SA
NSW
QLD
20,005
29,850
25,307 16,701
SA
Source: PEXA, Land Services SA
2019
2020
VIC
18,835
WA
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2021
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3029 (Truganina) in VIC recorded the most refinances of any postcode in 2021 6 of the top-10 suburbs were in VIC with the remaining 4 in NSW TOP 10 POSTCODES FOR REFINANCES, NATIONAL, 2021 3029 (TARNEIT) 3029 (TRUGANINA) 3064 (CRAIGIEBURN) 3030 (WERRIBEE) 3977 (CRANBOURNE EAST) 2155 (ROUSE HILL/KELLYVILLE) 2765 (BOX HILL) 3978 (CLYDE NORTH) 2145 (WESTMEAD) 2170 (LIVERPOOL) 3754 (DOREEN) 0
500
1000
1500
2000 VIC
VIC
NSW
2500
3000
3500
4000
4500
5000
NSW
Source: PEXA. Analysis only includes properties settled digitally through PEXA Exchange. Not available for QLD and SA. Data analysed at postcode level with the prominent suburb in that postcode shown for convenience
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Practitioners, brokers and agents collaborating for consumers By Jarrod McAleese
Property in Queensland continues to go from strength to strength. 2021 was a year to remember – for the first time on record, it facilitated the most sale settlements of any jurisdiction in 2021 with 232,824, up 41% from 2020 and up 59% from 2019. And while the market may have eased slightly from the soaring highs in recent months, the Sunshine State is still proving to be popular among homebuyers nationwide. But what’s it like to buy property in Queensland in 2022? Digital settlements combating ongoing challenges The answer is that it’s digital and it’s easy. As Empire Legal’s George Sourris and Abi Wright explain, amidst more than two years of significant hurdles, flexibility delivered by online processes
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are proving paramount for their business and clients. “The overwhelming majority of our settlements these days take place on PEXA. Paper settlements are becoming much less common and
PEXA is by far the safest option to ensure an on-time settlement, especially given the COVID-19 lockdowns and more recently the floods. “Where settlement can take place on PEXA, any closure of physical settlement locations or delays with critical documents arriving and relying on Australia Post becomes irrelevant. We always suggest it as the safest, fastest and most secure option for our clients, with the least margin for error.” This sentiment is echoed by Cara Haynes, Broker, Loan Market. “In Queensland, most of our settlements are 30 days which are some of the fastest in the country. Given the snap lock downs over the past 2 years and the floods, paper settlements are no longer practical. “With Australia Post having blown out service levels, we find even when we are down to the wire, we can still get the file booked in and settled on time.” Getting the keys on time
The entrenched shift to digital has seen this risk mitigated and buyers able to revel in the joy. “As agents we have traditionally been out of the loop when settlement day comes around, but PEXA has streamlined the process dramatically. Now we get an email the minute settlement has occurred so that we can release keys to the buyers and congratulate the vendors and buyers in a timely manner.” The future With practitioners, brokers and agents alike increasingly working together to drive Queensland’s digital property reform, in line with New South Wales, Victoria, South Australia and Western Australia, the Empire Legal team feel the change is inevitable. “There is no doubt that electronic settlements are the future for the digital property ecosystem. We saw the accounting profession go digital with Xero and all of its 3PP partners, and we fully believe the same transformation is well and truly on the way in our sector.
Moving into a new home is an exciting milestone for many.
“It is not a matter of “if” all the parties will be collaborating digitally, but “when”. We already see the vast Handing over the keys is always a special moment for Chris Ransley from majority of transactions occurring Ray White – North Stradbroke Island – this way – the sooner bankers, but property settlements are inherently brokers and lawyers jump onboard, the better for all professionals, and complex, and things can go wrong on their clients.” the big day.
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Industry members coming together to help advance property By Jarrod McAleese
Australia’s homebuyers and sellers benefit from a world-first online settlement journey. The past decade has seen significant digitisation – today, the overwhelming majority of property transactions are facilitated electronically. For all in the sector, practitioners, financial institutions, representative bodies and government alike, delivering the best possible customer experience is paramount. And the degree of collaboration between these parties, for the benefit of consumers, is something unique to our local industry.
of our Member Advisory Councils (MACs), meeting quarterly to discuss key issues within the sector. In this new initiative, inaugural members were elected thanks to their breadth of experience and leadership within the community – and chosen from a cross-section of local markets and business sizes to ensure a diverse range of voices were heard.
As we head into the final quarter of this financial year, we caught up with three of our MAC members to discuss why they’re passionate about the Throughout FY22, leaders from across project, what lies ahead for industry the country have teamed up as part and the future evolution of the council. 6
Rianna Davies, COO, Vicki Philipoff Settlements “The good faith of the participants and the transparency given by all involved has been of huge benefit. We are grateful the MAC has allowed us to be heard where we hold concerns and to hear the concerns of others during the council meetings. “A better appreciation and understanding of any pain points within the current process means the implementation of better, larger scale strategies across all of our practices – that will inevitably create a smoother process for all and positive outcomes for our clients. “It has been a pleasure to see the unity and understanding shown when participating in the open discussions between the many interested parties, all working together as a united group for betterment of the industry has been fantastic to see.” Andy McNeill, Director, Spectrum Client Solutions “From PEXA’s tentative beginnings, the changes that we have since seen could not have been so seamless without the support and collaboration of all the stakeholders. “As a group, we’re committed to continually devising solutions to the challenges we will face moving forward – namely legislation, integration, economic and environmental issues. “Over time, I can foresee other stakeholders such as Environmental Planning Authorities, LGAs and
architectural consultants playing a greater part in the Member Advisory Council.” Jacob Corbett, Director, Bradley and Bray Lawyers “There has been an incredible focus on user friendly developments and enhancements aimed at making the settlement process run as smoothly as possible. That’s where our role on the Council has been so fascinating and rewarding, being able to direct PEXA to where Queensland practitioners need the most assistance. “While there are many important parts of the industry that need attention (such has rising house prices, sustainability, housing shortages), my main focus centres around innovation. Moving forward, what I would like to see is regulatory bodies becoming better adapted and responsive to emerging innovation and technologies, which will help shape the future of our industry. “Clients want innovative ways of doing things. We need to keep being able to deliver on this, and I believe collaboration and innovation remains at the core of this approach going forward.” PEXA will soon begin accepting applications for FY23 membership – keep an eye out for our criteria and more information on the process in the coming months. If you’d like to learn more or submit your feedback, reach out to us via email at practitioner@pexa.com.au. 7
Your data matters – make sure to back it up By Jarrod McAleese
We’ve all seen a pop-up message prompting us to “backup” the data on our devices, whether it’s on our phones, laptops, or desktop computers – don’t ignore it! Every minute, 113 phones are lost or stolen, and around 30% of computers are infected with malware. (Kensington Study, 2013)
Despite this, around 21% of people have never made a backup. (Backblaze – State of Backups 2021)
We receive these alerts for good reason. The valuable information of many Australians, including businesses within our property industry, is at significant risk if it is not regularly backed up to a safe location. Those working within our sector accumulate highly sensitive and critical data, making them, as well as the homebuyers and sellers they represent, attractive targets for cybercriminals. A backup is a copy of digital information such as photos, documents, videos and data from apps saved to an external storage device or the cloud.
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The Australian Cyber Security Centre (ACSC) has shared case studies on how some Australian small businesses who were targeted by cybercriminals, protected their important information and data by backing up their devices. Case study #1 In Queensland, employees of a small business noticed their documents had a different file extension and could not be accessed. Staff found a text file left by a cybercriminal, claiming their files had been encrypted and demanded a ransom payment to recover them. Upon further investigation, the business detected a security breach in their remote desktop server and decided to shut it down and remove it from their network. The business had all their files backed up and were able to restore everything that had been encrypted by the cybercriminal. Case study #2 In Western Australia, an employee of a large business clicked on a suspicious link in an email. After clicking the link, the employee’s computer was infected with ransomware that spread to the company’s file server and started encrypting files. Thankfully, the company had good access control policies in place and the employee’s limited permissions reduced how many files could be encrypted by ransomware. After noticing a number of folders were encrypted, the company shut down all computer systems and restored all computers and servers from a recent backup.
Case study #3 In the Australian Capital Territory, a small business noticed their Network Attached Storage (NAS) device was infected with ransomware. Their NAS device held business-critical files and photos. The business became aware of the attack when the owner couldn’t access their files. A cybercriminal had encrypted their data and left a ransom note demanding a Bitcoin payment in exchange for the decryption key. The business refused to pay the ransom and was able to restore most of the affected files from backups. After the attack, the business updated the malware scanner on their NAS device. In these three cases, due to the existence of recent company-wide backups, each business was protected from any serious damage. Secure your data today Our important data can be lost instantly, so back it up regularly before it is too late. On 31 March it is World Backup Day. Australians should use this as an opportunity to backup their important documents and precious memories, and encourage their family and friends to do the same. The ACSC website is the one-stopshop for Australians and Australian businesses to access a range of stepby-step guides on how to backup devices, including for Microsoft Windows, Apple iOS and Apple macOS devices. For more information, visit cyber.gov.au.
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Do you have feedback, a question or a story pitch? Get in touch with us at industry@pexa.com.au
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