Login
iscover
The nation’s decision to re-elect Malcolm Turnbull’s Coalition government will have a positive effect on the Australian property market as consumer confidence returns and properties begin to hit the market, according to the CEO of a major real estate network.
LJ Hooker CEO Grant Harrod said Australians have been sitting on their hands, waiting to see the outcome of the federal election before making a decision to list.
“The stability of a familiar government and record low-interest rates will fuel the property market as we head into the busy spring selling season,” he said.
“We expect to see a strong last six months of the year, with buyers heading out in force looking for well-maintained and well-priced property.”
Property and house prices were at the centre of the 2016 election campaign, with the Liberal government claiming to reduce the power of building unions and declaring it would use infrastructure funding to negotiate greater land supply from states.
“The government’s election promise to increase land supply will have a positive impact on housing affordability, brought more into balance with greater supply,” Mr Harrod said.
“This is a move that will alleviate pressures felt particularly by first home buyers.”
Property Council of Australia CEO Ken Morrison congratulated Prime Minister Turnbull and the Coalition on their re-election, and said that while the election result was close, the government should not take the wrong lessons from the outcome.
“The result is not a ‘three-year leave pass’ from economic reform. We should not think that the 25 years of economic growth that Australia concluded was achieved by ignoring the economic fundamentals,” Mr Morrison said.
“The decision of S&P to put Australia on negative credit watch is a reminder that Australia is responsible for our own economic future,” he said.
“It has been the property and construction sector that has largely filled the hole left by the end of the mining investment boom. However, the government must understand that a number of leading indicators are softening in this sector.”
[Related: Election result 'not a three-year leave pass']
