While sizeable parts of Australia were disappointed with the recent national election results, overall the property industry has welcomed the outcome.
“A labor win may have been better for some but the May election result will prove a long-term benefit for our property market,” Alex Mirzaian, Investment & Development Properties Agent at CBRE NSW, said.
“Development should see an increased interest as construction loans are being reviewed and will provide a second opportunity to cycle growth.”
Victory for the Coalition means that there should be no increase or alterations made to existing national property taxes, such as negative gearing and capital gains tax – a big win for the Australian housing market.
Many saw Labor’s intended interference as counter-productive to an industry that needed assistance rather than more hurdles. Construction activity and house prices across the nation were both in decline while economic growth also showed signs of slowing.
In the less than three weeks since results were announced, most states have seen a return to favour with property development activity picking up. NSW in particular has welcomed the news.
“We have seen increased activity in all of our on-market campaigns since the election result,” Mr Mirzaian said.
“Amenity and delivery of key infrastructure in our growing western Sydney suburbs is setting up our next cycle and we are helping clients get into great deals that will no doubt see strong growth with our Government heading in a more progressive direction.”
Clearance rates and auction results are showing a promising recovery, with rate cuts and further incentives from the government expected to continue to drive interest.
Mr Mirzaian notes that this is just the beginning and has confidence in the market’s positive performance through the remaining months of 2019.
“Combining effects of lower rates, easier borrowing, tax cuts and rising market confidence will help power along our economy and get our employees on better wages.
“We are genuinely excited for the second half of the year and see a strong number transactions heading our way!”
Contributed by Alex Mirzaian
CBRE Western Sydney