Digital property transactions are experiencing exponential growth as Property Exchange Australia (PEXA) announced that last month over 100,000 transactions had been completed on the platform, a 25 per cent jump from the month prior. In April the company also announced that over one million transactions were settled digitally on the platform.
Digital transactions have grown from strength to strength with a Compound Annual Growth Rate (CAGR) of 202 per cent (FY 2014 to May 2018). Much of this growth has occurred over the past year, with PEXA’s May 2018 transfer transactions more than nine times higher than the same period the year prior.
Winner of PEXA’s 2018 Industry Acceleration award, Richard Wensley, managing director CS Legal said, “My employees have all really taken PEXA on board. I’m not surprised that e-Conveyancing has taken off. The benefits I’ve seen in my company are incredible. We have more work flexibility and more time dedicated to customer service and company growth. The industry definitely needs to embrace this change. It’s progress.”
Studies have shown a time saving of between 3-5 hours per transaction and the potential to reduce settlement delays. A recent independent analysis also revealed that the Australian conveyancing industry stands to benefit approximately $89 million per annum once it goes fully digital by 2021-22. The faster the industry transitions, the quicker these net gains can be realised, as duplicate systems, electronic and paper, are removed. Given the current growth trajectory, a fully digital industry could be achieved well ahead of schedule.
“This growth is a testament to the industry’s readiness to embrace digitisation. This achievement has far exceeded our projections to date and would not have been possible without the unprecedented collaboration we have experienced across the network,” said Marcus Price, CEO, PEXA.
Collaboration across the network has been key to its success with more than 145 financial institutions, five land registries and revenue offices, as well as over half of all legal and conveyancing firms nationwide transacting on the platform. Since the company was established in 2010, it has worked tirelessly to bring all these stakeholders together to create a thriving network that is successfully improving the home buying and selling process for Australians.
“This network effect is propelling the property industry towards the 21st century as more practitioners begin to realise the benefits of digitisation,” said Mr Price.
“They are the influencers the industry needs.”