PROPERTY A
PUBLICATION
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ISSUE 16
WHAT’S INSIDE 2-5
Insights: Property refinances hit all-time record high across Australia
4-5:
Analysis: Market cools through October
6-9:
Industry: Meet the winners of this year’s PropertyX Innovate Awards
10-11: News: Late South Australian pioneers honoured at this year’s AICSA State Conference 12-13: Security: CBA experts share tips on how to communicate sensitive details safely
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Property refinances hit all-time record high across Australia By Stuart Allott
Australia set a new all-time property record with more than 108,000 property refinances occurring over the September quarter, according to analysis from PEXA Insights, the research arm of PEXA – Australia’s leading digital property settlement platform. The PEXA Refinance Insights report deep dives into the latest property refinance trends, with refinance settlements in the September quarter surpassing the strong June 2021 quarter by almost 30%, which also represents an increase of almost 50% year-on-year. The report found Victoria recorded the highest volume of refinances at almost 38,000 for the quarter (up 29% from 2
the June quarter, and 43% year-onyear), with Western Australia (9,125 refinances) seeing the highest year-onyear growth, up 89% when compared to the 2020 September quarter. Refinance activity has risen more than 20% quarter-on-quarter within all mainland states, with Queensland (18,027 refinances) up 55% yearon-year, New South Wales (36,345 refinance) up 49% year-on-year, and
South Australia (7,232 refinances) up 44% year-on-year for the September quarter. PEXA Insights’ Head of Research, Mike Gill, said: “Refinancing soared as property owners took advantage of ultra-low interest rates, buoyed by continued speculation that the cash rate could increase before 2024 - the timeframe earmarked by Reserve Bank of Australia to hit 2 to 3 per cent inflation.
Regions of outer Melbourne, including suburbs such as Tarneit, Point Cook, Craigieburn, Truganina and Clyde North, dominated the national top suburbs list for property refinances within the September quarter, with Blacktown and Schofields (both in New South Wales) the only suburbs outside of Victoria to sneak into the top 10.
The PEXA Insights team publishes refinance activity via its recently released Refinance Index, an interactive online tool that shows market performance within the property refinancing sector. The PEXA “Refinances were strongest in greater Refinance Index stood at a record 199 capital city areas across the nation, with points for the week ending 3 October far lower refinancing activity observed 2021, almost double the Index’s in regional areas. This trend suggests starting point in October 2018. a combination of greater competition among lenders in metropolitan areas, and higher property prices motivating owners to seek out better deals,” said Mr Gill. 3
A soft October for national property sale settlements By Stuart Allott
A cold and wet winter, together with extended COVID-19 lockdowns in Victoria and New South Wales, have led to a soft October for property sale settlements across the nation. Western Australia (down 5.5%), Queensland (down 5.3%), Victoria (down 4.3%) and New South Wales (down 3.1%) all witnessed a reduction in sale settlement results in October when compared with September, although this is expected to turn around in November as restrictions are lifted across the country. In contrast to month-on-month figures, all four Australian states saw increased year-on-year numbers for October, surprisingly most notably in Victoria, where property sale settlements were up more than 20% on the month’s 2020 figures.
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PEXA Insights’ Head of Research Mike Gill said, “October was the fourth month in a row for sale settlement declines in New South Wales and Victoria, directly corresponding with their most recent lockdowns. We note many of those restrictions have now been lifted, so we would expect a very busy November-December period within the southern market.” Mr Gill noted that although Queensland experienced a slight month-on-month decline in numbers, the Sunshine State continued to be the shining light for property in 2021.
spike in advertised properties during the spring selling season, the industry should brace for heightened activity,” said Mr Gill.
“In October, Queensland once again recorded the most monthly sale settlements (19,679) of any state, a result that was 18.0% up on the same period the previous year,” said Mr Gill.
To view the latest data on both property sale settlements and refinance activity, visit https://www.pexa.com.au/insights.
The Australian property market has demonstrated remarkable resilience throughout the pandemic, with an important spring and summer selling season on the horizon.
Sale settlements
“We do expect settlements volumes to increase in the last two months of the year, as we saw a huge spike in settlements in December 2020 as the country exited lockdown restrictions. “With many vendors having waited for the end of the lockdown to list their property, the majority of interstate borders reopening and flights increasing, combined with the usual
NSW
QLD
VIC
WA
Oct-20
17,341
16,677
13,315
7,433
Sep-21
18,188
20,772 16,903 7,938
Oct-21
17,622
19,679
16,168 7,500
MoM
-3.1%
-5.3%
-4.3%
-5.5%
YoY
1.6%
18.0%
21.4%
0.9%
Sale settlements 25,000
20,000
15,000
10,000
5,000
0 Oct-20 Nov-20 Dec-20 Jan-21
Feb-21 NSW
Mar-21
Apr-21
QLD
May-21 Jun-21 VIC
Jul-21
Aug-21
Sep-21
Oct-21
WA
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PROPERTY INNOVATIVE AWARDS 2021
Forward-thinking Australian legal practitioners, major law firms, lenders and industry bodies were recently toasted at the 2021 PropertyX Innovate Awards, hosted by PEXA. Forward-thinking Australian legal practitioners, major law firms, lenders and industry bodies were recently toasted at the 2021 PropertyX Innovate Awards, hosted by PEXA. Now in its fourth year, the event recognises organisations that commit to adopting innovative practices or programs that improve the experience of buying and selling a home for Australian consumers. Today, more than 80% of all property settlements are processed digitally, with 20,000 Australian homebuyers and sellers each week benefiting from an unparalleled digital experience. As a result of extensive collaboration between practitioners, lenders and government, Australia boasts the world’s only digital property exchange
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platform, placing it in a uniquely advantageous position during COVID-19. At a time when many countries have struggled to keep property transactions moving, Australia’s largest asset class, the $9T residential property industry, has remained insulated thanks to its commitment to digital innovation. PEXA’s Chief Customer Officer, Lisa Dowie said that PEXA was delighted to celebrate businesses from across the country for their outstanding efforts. “As an Australian start-up driven to be a world leader in digital property settlements, PEXA is passionate about supporting like-minded organisations that innovate with the consumer front of mind.
“The industry has had to navigate unprecedented challenges over the past two years, but thanks to these businesses, Australia’s homebuyers and sellers have continued to benefit from an ever-evolving and truly seamless property exchange experience.” Winners were selected from a pool of close to 10,000 businesses, with entries judged by an independent panel, including representatives from the Australian Legal Tech Association, Proptech Association Australia, AGL, Ezypay, Propel Ventures, Hatch Creations and Josef.
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Meet this PROPERTY year’s winners X INNOVATIVE AWARDS 2021
Lender: National Australia Bank (NAB) NAB was recognised for adapting its internal processes to become the country’s number one financial institution for verifying settlements on-time. Executive – Home Ownership, Andy Kerr: “We know buying a property can be one of life’s biggest decisions, and settlement time can be stressful – which is why we’re always looking to innovate and improve, so our home loan customers can have a better experience. “We’re proud to have won the 2021 PropertyX Industry Innovation Award for Lender of the Year – it’s a result of the hard work and great efforts from our Lending Services teams, and the collaboration with industry partners like PEXA. “Over the past 12 months we’ve been working hard to make settlement time easier and faster by introducing process improvements and developing new technology. We’ve also focussed on improving the collaboration between banks and industry, because working together means a more seamless experience for customers. “These efforts mean that when settlement time comes, our home loan customers will have more certainty around timeframes and our bankers can deliver a better experience – and it’s just the start of more improvements to look forward to.”
Majors and Developers: HopgoodGanim Lawyers Queensland’s property industry is thriving in 2021 and HoopgoodGanim Lawyers is undoubtedly playing a key role. In addition to being valued contributors of the Urban Development Institute of Australia and Property Council of Australia, it set a state record for the most property settled in a single day – 199.
Panel Law Firm: Galilee Solicitors The national firm Galilee Solicitors developed an end-to-end digital platform called KWIL, which facilitates the online delivery, signing and returning of loan and mortgage documentation. The solution enables lenders to provide their clients with an intuitive digital experience that serves as an engaging conduit between the online lending application process and the execution of settlement. Partner, Cordell Smith: “We made a conscious decision to build our own e-signing platform from the ground-up, whereas most of the industry has defaulted to a “docu-sign” solution. “The loan signing process is stressful and confusing for most borrowers due to the number of documents involved and their complex nature, which then need to be returned. This award is recognition for our team’s success in removing much of the stress and confusion from that process, rather than merely digitising those same problems.”
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Practitioner (<20 employees): Nest Legal A true community leader, Nest Legal has built a community of more than 1,200 innovative Australian lawyers, who collaborate and peer-share to find new ways to work in law. Additionally, the Victorian business has partnered with Homeground Real Estate, which reinvests all its profits into Launch Housing to help end homelessness. Principal, Laura Vickers: “Innovation to us means constantly asking how we can make conveyancing easier for our clients and our team. We devote significant time each week to continual improvement and innovation – every week, we make 5-10 small changes to our process based on suggestions from our whole team.” “Winning this award was such an amazing feeling for our team after 18 challenging months of practicing through the Melbourne lockdown.”
Industry Partner: Australian Institute of Conveyancers (NSW) Residential property is Australia’s most valuable asset class, and the settlement process is a natural target for potential cyber-criminals. AICNSW has responded to this by establishing its Foundation Cyber Insurance policy, to ensure its members are given the opportunity to maintain a base level of protection for their businesses and clients. CEO, Chris Tyler: “Key to innovating is maintaining a clear line of sight to the latest in the industry development – and adapting to best service and protect the client’s needs and education is at the forefront. “Maintaining a multi-channel education platform with a range of topics and themes is a key function of AICNSW which helps enable members to stay informed – and continue to introduce innovative measures within their businesses.”
Better Together Award: Stockland and bytherules Conveyancing Stockland was instrumental in the proposal, design, consultation and testing of recently introduced integration between PEXA and the Australian Taxation Office, streamlining the GST Withholding process, which provides significant value to industry. Meanwhile bytherules Conveyancing is the first law firm in Queensland to successfully operate a franchise model, and in doing so, has pioneered an entirely novel category of employment within the industry. Unlike other jurisdictions, Queensland does not recognise the qualification of a licensed conveyancer, but through its innovative model, more Queenslanders are able to run their own businesses and support their local communities. Bytherules Conveyancing’s Managing Director, Chris Collinge: “As the first firm in Queensland to settle electronically in 2015, we have been constantly encouraging, and working with, our peers in the industry to transition to digital and provide a better service for their clients. “Innovation is part of our DNA and we will continue to adapt as much as possible. The ability to transact online has completed a very important part of the jigsaw puzzle for us, without which many other innovations we planned could not have taken place – and over the past 18 months it is hard to imagine how the industry would have coped without this solution.”
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Pioneers honoured at this year’s AICSA State Conference By Jarrod McAleese
Emma Vargas of Stevens Partners and John Erskine from Conveyancing Matters and Searchlight have been named as the inaugural joint winners of the Paula Main & Michelle Lihou Award. Winners were selected based on their contributions to the sector’s ongoing digitisation. Vargas was acknowledged as an emerging leader within the SA property industry – a key figure within collaborative working groups as the settlement process continues to be enhanced for buyers and sellers.
“These are two women who did extraordinary things for our industry as businesswomen, conveyancers, colleagues, friends, and their promotion of PEXA among their peers was instrumental in getting as many conveyancers involved at the earliest opportunity. “Their encouragement and support for those around them inspired the rest of us to invest in ourselves and the industry, and to be recognised as having these same traits is very humbling.
“Looking at the list of nominees; these are the types of people we strive to be because, like Paula and Michelle, “Having worked with Paula many years we all want more, but without the ago and seeing how she operated and collaboration of others, the want of to now, through Stevens Partners, be more will go nowhere. The turnout affiliated with what Michelle built at at our recent AICSA conference is Goolwa Conveyancing, the respect, the epitome of this. 150 people from the knowledge and the community; all across the state show we are all it is nothing but a privilege to receive committed to ensuring clients receive this award. the best possible service,” Vargas said. 10
Meanwhile John Erskine was recognised for his exceptional contribution to the community over many years – having been a member of the AICSA since 1990.
“I’m honoured to have won this award, particularly given the respect I have for the other finalists and the judging panel. I consider myself especially privileged to have received an award in the names of Paula Main and Michelle Lihou, so highly thought of in our profession. “I’ve always been driven to look forward and embrace the opportunities that present themselves. I have had a long and enthusiastic involvement in electronic conveyancing, both in SA and nationally.
He has been an instrumental figure in the state’s transition to digital settlements – having notably facilitated the first electronic transaction in SA.
“Today, I’m very passionate about continuing to inspire younger colleagues – it’s a pleasure to watch them develop and it gives me great personal pride to see them continue to grow within our industry and through their ventures,” Erskine said.
The Paula Main & Michelle Lihou Award This initiative has been established by PEXA and the Australian Institute of Conveyancers – South Australia (AICSA) in memory of Paula Main and Michelle Lihou. The pair were highly popular and respected members of the SA property community, who demonstrated exceptional leadership and genuine care for their peers. Additionally, both women were valued members of the AICSA, with Michelle serving on the board, as well as being key figures in the state’s transition to digital property settlements.
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Communicating safely with your clients By Theo Anton, Information Security Manager, CBA
Australians lost over $128 million to business email compromise crimes in 2020.1 Yet how many emails will you send today? And how often will you stop to consider that a criminal could be lurking in your client’s inbox – or even worse – in your inbox? When it comes to professional communications, email still reigns supreme; but email was never designed to be secure. Email isn’t as secure as you might think Email gives anyone with an internet connection an easy way of contacting anyone else, at any time, for free. Unfortunately these benefits also extend to cyber criminals, who can quickly and easily make contact with their would-be targets.
the headlines. Email is also one of the largest contributors to data breaches of personal information. Beyond the obvious financial impact of email related cyber crime lies the potential for reputational damage to your brand, ongoing legal disputes, and the health impact of dealing with all the resulting stress. How email incidents happen
Email is designed to be highly accessible. You can log in from your computer, your phone, your tablet, or Email related fraud remains stubbornly via a web browser from anywhere in the world. But this online accessibility prevalent. For every story about also means that anyone who can guess, homebuyers being swindled out crack, or steal your password can log of their deposit or sellers failing to in to your email account to send and receive settlement funds there are receive messages on your behalf. many near-misses that don’t reach 12
1 ACCC’s Targeting scams report 2020: https://www.accc.gov.au/publications/targeting-scams-report-on-scam-activity/targeting-scamsreport-of-the-accc-on-scam-activity-2020
Short, common, guessable, or reused passwords are commonly exploited by cyber criminals to steal personal information or tamper with payment requests. It would be a mistake to assume that email compromise attacks are all cyber security incidents and are therefore highly sophisticated and technical. In many cases fraudsters will simply register domains similar to a genuine domain (think ‘comnbank.com.au’) in a bid to trick victims into thinking that their emails are legitimate. Attackers can also ‘spoof’ the email sender address to trick your clients into thinking that they’re communicating with you or another trusted party. The solutions, technologies called Sender Policy Framework (SPF) and Domain-based Message Authentication Reporting and Conformance (DMARC), are not always enabled for many businesses. An astounding 38% of data breaches Australia-wide don’t even involve a malicious actor.2 Data leaks like these happen because senders forget to double-check email addresses, fail to encrypt sensitive information properly, or don’t apply the correct controls around sensitive data. A percentage of the billions of emails sent each day are malicious ‘phishing’ emails containing malware, spyware, or links to credential harvesting websites. Victims who open attachments, download malware, or enter credentials into malicious websites give criminals an opportunity to access their inbox.
Locking down your inbox Here are some simple steps you can take right now to make your communications more secure. 1. Set up multifactor authentication (MFA) for your email account. Rather than relying on a password alone, MFA ensures that no one can log into your email account without also providing a secondfactor of authentication – usually a code generated by an app on your phone. MFA is free and only takes a minute to set up. 2. Consider investing in a secure way to transfer files. Tools that allow clients to upload documents directly can remove or reduce the need for email and all of its associated risks. 3. Develop a level of healthy scepticism about email. A benignlooking email could be from a criminal. An email from your client could actually be from an attacker lurking in their inbox. Navigate to websites rather than clicking on email links, and talk to your staff, business partners, clients, and suppliers about the dangers of email fraud. 4. Mitigate the risks of email fraud by calling clients to verify account numbers and payment instructions. Delete sensitive information from your inbox when it’s no longer needed, and investigate other options for sharing sensitive data rather than putting all your faith in email.
2 Notifiable Data Breaches Report Jul-Dec 2020: https://www.oaic.gov.au/privacy/notifiable-data-breaches/notifiable-data-breachesstatistics/notifiable-data-breaches-report-july-december-2020/
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Do you have feedback, a question or a story pitch? Get in touch with us at industry@pexa.com.au