How Much Will The Federal Election Affect The Gold Coast Property Market?
The Prime Minister has recently announced there will be an election on 3rd May 2025. A very important issue for all property Sellers and Buyers is, therefore, to what extent will a federal election affect the property market? Below are our thoughts on this subject.
Our starting point is to say that Domain recently published a report of data from the last seven federal elections which showed that neither of the major political parties’ policies to date have had a significant advantage over the other when it comes to impacting property market growth. While we are not entirely sure if that is good or bad news, the report did at least confirm that First Home Buyers are more active during Labor governments, comprising around 34% of owner-occupier loans compared to 30.5% when the Liberals are in power. Therefore, neither major party has a clear edge in driving a stronger property market, which seems to indicate that the effect of federal elections on the property market is not as significant as a lot of us might think.
And what of the period around when the election actually takes place? Research regarding auction clearance rates shows elections have very little impact on clearance rates even though broader political uncertainty might dampen market activity. But, of course, political uncertainty can arise at any time and not just during elections (think of the periods of uncertainty surrounding the demise of Gillard, Abbott, Turnbull and Morrison). What research does show is that during any such periods of uncertainty, potential Sellers and Buyers typically delay major decisions until the political landscape becomes clearer.
While a lot of potential Sellers and Buyers will undoubtably be sitting on their hands until after the result of the forthcoming federal election is known, it seems to be the case that the real factors affecting the property market are not political but rather socioeconomic. While federal elections can influence housing policies and property market sentiment, they represent only one part of a much larger picture.
Are you thinking about selling? And would you sell for the right price? If you would like to have a confidential discussion about your property and how we can help you achieve the best possible sale result, please get in touch. Turner Mayes Real Estate is a boutique agency and Peter Turner has many years of experience selling Gold Coast properties. Our priority is our clients and achieving the best outcomes for them.