PEXA monopoly called into question at Federal Competition Inquiry

Thursday 31 August 2023 – Today, the Property Exchange Australia (PEXA) were called to appear before a federal competition inquiry, as it marks more than $1bn in revenue since 2018. The Inquiry into Promoting Economic Dynamism, Competition and Business Formation chaired by Dr Daniel Mulino MP, which has been examining monopolies and market concentration in the Australian economy, today turned their sights on PEXA’s monopoly of the national eConveyancing market.

PEXA’s appearance follows results last Friday, which shows that the monopoly has made more than $1 billion in revenue in the last 5 years with almost 100% market share across Australia’s major states, with pricing increases in FY23 alone of $14m net of inflation and cost impacts. First set up as a government initiative by the Council of Australian Governments (COAG) in 2008, PEXA was publicly listed in 2021 with a more than $3bn valuation. PEXA now has a monopoly over Australia’s property settlement network, settling nearly $900bn worth of property annually.

Today, PEXA held firm on their position to protect their monopoly interests during their appearance at the federal inquiry. Again, we saw PEXA calling into question the hard work of industry and government in determining the path forward for competition in our market.

With no pressure to lower prices, no drive to service innovation and no urgency to make the network more resilient, Governments with industry have been on a journey of more than 5 years to open the eConveyancing market to competition, benefitting millions of Australians buying and selling homes every day.

Despite expert reports showing the interoperability model will deliver benefits through lower prices, more innovation and more network resiliency, PEXA continues to frustrate the reforms by missing key milestones, withdrawing from working groups for over 6 months and hiring lobbyists to further their own interests.

Sympli continues to work with Government and industry to progress these competition reforms which will deliver choice and value to millions of Australians and help bring productivity gains for the national economy.

Sympli Chief Executive Officer, Philip Joyce, said: “This week has been yet another wakeup call to Government and industry that the PEXA monopoly continues to fight tooth and nail to protect their patch. As it surpasses more than $1bn in revenue over the past 5 years, it is critical now more than ever that competition reforms are delivered as soon as possible.

Today, PEXA reminded us that they are driven by protecting their profits and firm regulatory decision making is needed. The good news for industry is that government has resolved, through independent analysis and stakeholder engagement, that interoperability is the path to successful competition.

We look forward to the decision to enforce these reforms being enshrined in regulation, and all stakeholders to continue working together to achieve these goals”.

–ENDS–

Media Inquiries: Jerome Boutelet, Public Affairs Manager at media@sympli.com.au, or 0411 045 119

About Sympli
Sympli is the result of a collaboration between InfoTrack and ASX. We want to create more opportunity, add value and represent the market with an e-Settlements service from which practitioners across Australia can benefit.

InfoTrack is Australia’s leading provider of e Conveyancing technology and services and has been creating software for the legal and financial industries for over 18 years. InfoTrack has a focus on simple, end-to-end solutions, leveraging expertise to craft a truly integrated e-settlements platform that you can trust.

As one of the world’s leading financial exchanges, the ASX bring experience in clearing and settling transactions with security, speed, reliability, and cutting-edge technology. The combination of the two brings you Sympli: the next-generation e-settlements solution delivering healthy competition, reliability, security and value to the industry. For more information visit www.sympli.com.au