How the election impacts on market
Consumer tips provided by REIQ
THE Queensland property market has had a softer quarter through to March and it’s likely that the June quarter may not be much stronger and this is due, to varying degrees, to the federal election.
The Brisbane LGA median house price fell 2.4% to $620,000, and this quarterly fall ends Brisbane’s record run of 14 consecutive quarters of positive growth.
This year we’ve had a longer than typical federal campaign – eight weeks – and this has impacted on business and on the real estate market.
We know that people decide against buying or selling when there is uncertainty in the air. Real estate agents are reporting a significant downturn in listings and enquiries from buyers as they wait for that uncertainty to be resolved.
This year has also been unusual because real estate has been front and centre for much of the year through the negative gearing debate.
The REIQ has spoken out against changes to negative gearing provisions because they are a fundamental principal of our taxation system and to remove them from property would unfairly isolate one asset class.
All individuals and small businesses in Austra- lia have been able to offset their losses against other income and to make a change to the negative gearing provisions in relation to one asset class would be to awkwardly contort the market, which is likely to have unpredictable results.
In addition to negative gearing debate, and capital gains tax debate, in Queensland we have also had the impact of the State Government’s announcement of a 3% additional surcharge to stamp duty for foreign buyers, at a very critical time for the real estate market.
As the data in the latest REIQ Queensland Market Monitor shows, the property market needs all the investors it can find, and for the State Government to break a promise it made 12 months ago, and give overseas investors a reason to do business elsewhere is disappointing.
The State Government has also increased the first-home buyer’s grant from $15,000 to $20,000 and while this may seem like a great idea, the grant remains limited to new builds, which means people buying an existing home won’t have the ability to access it.
It is not beneficial to the market to drive buyers towards construction of new dwellings when parts of the state are in oversupply.
Towns throughout regional Queensland have rising rental vacancy rates and dropping sales prices.
The last thing needed is new housing. We e simply need buyers for the existing housing stock that we already have.