Green Square Blog

The surprise win for the Coalition had an immediate effect on the property market, with reports of a spike in confidence.

Such improvements are temporary, but it felt like a collective sigh of relief for the real estate industry and investors.

Not because people were aligned with one party or another, but more that the result brought an end to a period of uncertainty that has spanned all year as first NSW, then the nation, went to the polls.

There were two clear policies on the table from Labor and there were concerns from investors, retirees and others that there was going to be an effect on negative gearing and capital gains tax. People anticipated a Labor win and believed this would be followed by law changes. They were unable to make their next move, either buying or selling property, as they didn’t know what they were in for. Essentially they were stuck on the sideline.

But once the initial relief dissipated and the dust settled, we were still faced with the reality that the property market’s problems were not going to be fixed by the election. It has gone a long way to helping confidence and the lowering of interest rates will also help, but lending restrictions need to be eased if there is to be any real recovery in the market.

 
Published by Trevor Back

Principal, Raine & Horne Green Square

Phone: 0428 006 900

trevor.b@greensquare.rh.com.au

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