The Coalition’s Morrison Government was returned to office in the federal election just one week ago, and we have already seen an increase in consumer confidence here on the Sunshine Coast.
The unexpected election result is highly likely to benefit our property market on the Sunshine Coast. Here at Robert James Realty we have already experienced increased buyer demand, greater buyer numbers through open homes and improved offer and contract prices just one week post-election. On the Sunshine Coast, it is clear that our clients are getting back to business of building their property portfolio.
Elections traditionally create uncertainty and instability in the property market, and with a Labour government predicted for this years’ election, the property market Australia-wide had slowed in the early part of the year. We heard from our clients that they were nervous ahead of the election with the uncertainty of the outcome and what it would mean for the property market.
Labour campaigned on the promise of cutting negative gearing for existing properties from 2020 and halving the current capital gains tax discount from 50 per cent to 25 per cent. The uncertainty around the proposed changes resulted in declining confidence in the property market. Labour’s changes would have resulted in rents rising and capital values falling. This was not a good outlook for our Sunshine Coast vendors, buyers, property owners and tenants.
Following the Coalition’s re-election, we have experienced renewed enquiry for appraisals and had a number of clients confidently make the decision to go to market.
As part of their election campaign, the Coalition promised a boost for first home buyers and indicated that there would be rate cuts. AMP Capital chief economist Shane Oliver has predicted post-election that the Melbourne and Sydney markets will bottom out by the end of the year, rather than next year. It is anticipated that the election result could bring an earlier end to the bottom of the cycle.
Under the Morrison government, first-home buyers will have access to a loan scheme enabling them to purchase property with a 5 per cent deposit. The scheme is capped at 10,000 loans per year and requires a higher debt-to-income ratio. It is expected that the government will morph this scheme into a grant which could stimulate the lower end of the market. First home buyers who are waiting on the sidelines are encouraged to watch closely to see how this plays out, get in touch and start conversations with our expert team to take advantage of the opportunity to get into the market earlier.
Here on the Sunshine Coast, we are in a unique and exciting position. With so much new infrastructure and positive change in the local economy, the Sunshine Coast property market has avoided slumps impacting the rest of the east coast in the past 18 months. The Sunshine Coast in 2019 was heralded as ‘Queensland’s strongest real estate market’, outperforming the Brisbane market in the final quarter of 2018. Now, with the added boost of confidence from the election results, property prices are set to continue the trajectory from last year that saw median house prices up 13 per cent and units up 19 per cent in Noosa with similar increases across the entire Sunshine Coast.
To the home owners of the Sunshine Coast, this might be your perfect opportunity to capitalise on this rise in buyer confidence and demand. If you are considering selling your property or just want some expert real estate advice, please get in touch with our expert team.