Has the coalition victory created an increase in consumer confidence as it relates to the property market? Many groups are saying that stability is a good thing with signs already of greater optimism, clarity and certainty.
Dexar Group Chief Experience Officer John Minns has welcomed the end of the election campaign and stability for the housing market in Canberra.
“I think everyone is pleased the election is now over, and regardless of the result there is now some stability going forward,” he said.
Mr Minns said the election result clears the way for a resumption of business as usual for the real estate industry.
Mr Minns predicts, if implemented, the First Home Buyers Scheme and the abolition of stamp duty for first home buyers in the ACT may see an increase in buyers.
The scheme, according to the Liberal Party’s policy platform, will guarantee 15 per cent of the deposit for a mortgage, for 10,000 first time buyers.
“In 30 years in the real estate industry in Canberra, selling first homes to new buyers, the majority had saved less than a 20 per cent deposit,” Mr Minns said.
“I bought my first place with a 5 per cent deposit, and it was one of the best decisions I’ve made for my family’s financial future.”
Mr Minns also noted, despite the campaign rhetoric, it’s become clear in markets across the country that negative gearing has had no connection to the rise or fall of property prices.
“In Canberra, the supply of affordable housing and vacancy rates are at an all-time low, and the end of the election creates certainty,” he said.
He pointed out that certainty in the market affords investors two significant benefits, firstly to make an investment in future financial security through property and secondly providing accommodation options for Canberrans unable to find a suitable place to live.
Ouwens Casserly Real Estate
In South Australia, Ouwens Casserly Real Estate Managing Director Alex Ouwens called the election results a positive outcome for the SA housing market.
According to Mr Ouwens, if the opposition had been successful with their removal of negative gearing, rental prices would have increased because there would be fewer investors and therefore fewer investment properties.
He also speculated changes to capital gains tax would have meant more tax and less profit for people who own investment properties.
Mr Ouwens said Ouwens Casserly (OC) has seen the number of clients confidently going to market has increased in the first few days after the election already, which is a positive sign for the Adelaide market.
“Eleven unprompted appraisals came through this morning, OC normally average 1-2 a day,” he said.
“So, to get 11 through this morning, it seems like it’s not a coincidence that there’s confidence back in the marketplace immediately after the Coalition victory.”
Ray White Surfers Paradise Group
The Gold Coast property market has seen an improvement after the Coalition’s election victory, according to Ray White Surfers Paradise Group CEO Andrew Bell.
“Now that the election is over, one of the major impediments on the real estate market has been removed and we have greater clarity and certainty about the lay of the land,” Mr Bell said.
“There’s been a lot of negativity around this election which has impacted consumer confidence, and this comes on top of a challenging year that has been impacted by tighter lending conditions that have put the brakes on buyer activity.”
Mr Bell said with Prime Minister Morrison back in The Lodge, Australians will have more certainty about the state of the real estate market.
“There were massive fears about the effects of the proposed changes to negative gearing proposed by Labor,” Mr Bell said.
“That would have put the real estate market in uncharted waters and would have undeniably had major effects, particularly in established neighbourhoods that predominately have second-hand properties.”
Looking to the year ahead, Mr Bell expects the wheels of the Gold Coast property market to start spinning again, aided by a recent loosening of lending restrictions led by the smaller banks.
“This spring should see the flow-on effects, particularly because the bulk of price corrections have occurred over the past 18 months,” he said.
“This makes buyers feel that they can now purchase properties that represent value in the marketplace.”
Mr Bell said buyer activity will get an extra lift from a recent easing of credit conditions since the findings of the Banking Royal Commission were handed down last year.
“Second-tier banks are doing an amazing job of stepping up to fill the void created by the big four, and even the big four are now starting to lend more freely once again,” he said.