What next for the property market?

FORMER President of AIC South Australia Denise McKay runs the expert eye of a veteran conveyancer over election promises.

What’s the likely impact on the property market and some thoughts on what really needs to happen.

“Surprisingly this year did not get affected by the election as the market has stayed very strong and looks like remaining that way,” says Denise. 

“We may see a slight decline due to the winter months and then the pickup as usual for spring rush.”

Reflecting on the changes that Labor is planning to put in place for the housing sector with promises to build 100,000 new homes through its Homes for Australia Plan, she described that as an “ambitious promise”. 

Help to Buy Scheme

“The 2- 5% deposit with the government co-purchasing will certainly assist first home buyers get into the market however the downside is that the government will own part of the property and there will be caps on property prices,” she said. 

“A bit like the Housing Trust Scheme in the 70’s, this will definitely make it more affordable for the low to middle income earners get into the market.  It will be interesting to see how this will work.”

Social and Affordable Housing

“This project aims to build 30,000 homes over the next five years and this is a step towards relieving our long-term rental shortages but is this enough and what more could be done? 

“A major component of our rental crisis is the Airbnb factor as so many homes changed to this scheme rather the general rental market to the investors benefit. 

“What can be done to reverse this trend? Also Land Tax (in SA particularly) has put off many investors purchasing investment properties and many have sold off their investments to minimise these costs.

Foreign Buyer Ban

“The two-year ban on non-citizens buying existing properties will reduce competition for our local buyers,” notes Denise.

“Will any of these plans make homes cheaper and more affordable? 

“As always a lot of these schemes have a tendency to drive up prices as there is the usual scrabble of buyers entering into the market and the housing supply not managing to keep up. 

“We need these homes built and ready now and that is not going to be easy with the serious lack of skilled workers we currently have let alone needing more to fulfill these commitments. Whichever way you look at this it is not a quick fix. 

“The ideas are good, and something does need to be done to sort out our housing crisis but is this enough?

“I can see these measures affecting the housing market with strong growth for not just the immediate future but for many years to come once the new builds are available for occupation.”

What do you think? What does the election of a new government mean for the property market – and conveyancers? Give us your thoughts here