How the elec­tion im­pacts on mar­ket

Con­sumer tips pro­vided by REIQ

Whitsunday Times - - REAL ESTATE -

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.

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