Competition Watchdog Probes $800 Billion Online Property Monopoly Following Bank Threats – Sydney Auction Clearance Rate at 64%

Week’s Key Focus

The Australian Competition and Consumer Commission (ACCC) has launched an inquiry into PEXA Group, the dominant player in Australia’s $800 billion online property settlement industry, over allegations of anti-competitive practices, particularly regarding delays in interoperability reform.

During a Senate hearing, ACCC Executive General Manager Melinda McDonald confirmed the regulator is assessing the allegations. While the investigation is in its early stages, she noted that the issues warrant further scrutiny. The inquiry follows PEXA’s prior warnings to banks that cooperating with the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) on interoperability solutions might infringe on PEXA’s intellectual property rights.

PEXA has stated that it has not received any direct inquiries from the ACCC but is committed to collaborating with regulators to advance competition reform. However, the company has faced significant criticism for its monopoly status. A report by the NSW Productivity Commission highlighted that PEXA has earned substantial profits through the transition to electronic settlements but has been reluctant to embrace market competition.

ACCC Chair Gina Cass-Gottlieb criticized the privatization of PEXA without adequate regulatory oversight. Senator Dean Smith also pledged to continue advocating for solutions to address the issue.

Interoperability reform aims to enable parties involved in property transactions—such as lawyers and banks—to choose from multiple service providers rather than being restricted to PEXA. While the reform has garnered support from banks and regulators, it has been delayed due to its complexity. The e-conveyancing sector is projected to generate $430 million in fees during the 2025 financial year.

PEXA maintains that as a public company, its intellectual property assets are not available for use by government or third parties without proper compensation. With the investigation underway, whether PEXA will compromise on competition reforms remains a key question moving forward.

Auction Results Last Week

Sydney: 1315 properties went to auction, with results reported for 830 of them. A total of 533 properties were sold, achieving a clearance rate of 64%. The total auction value amounted to AUD 569,559,888, with a median house price of AUD 1,600,000.
Melbourne: 1245 properties went to auction, with results reported for 868 of them. A total of 527 properties were sold, achieving a clearance rate of 61%. The total auction value amounted to AUD 373,863,348, with a median house price of AUD 886,500.