Due to the lengthy forewarning of the September federal election, the election is unlikely to have a detrimental effect on the property market, according to Leanne Pilkington general manager of Laing+Simmons.
Pilkington says September is usually the month the market picks up due to the weather warming up, and the election date may cause a slight delay in spring campaigns being launched.
Although Pilkington says any potential delay will be short lived.
“It could be argued that a September election is preferable to October or November, as once the election outcome is finalised, the spring selling period can move into full swing,” says Pilkington.
“Buyers will still feel they have time to make a considered purchase and vendors need not rush to accept prices lower than their expectations.”
“In the five to six weeks leading up to an election, which is a more typical campaign timeframe, we would expect to see the market slow down until an outcome is finalised, as buyers take a wait-and-see approach and sellers react accordingly,” she says.
Pilkington also says both buyers and sellers will be eager to understand the policy positions of the Government and Opposition as they relate to the property market.
Depending on the policies announced, Pilkington says the election might have the effect of bringing forward demand before September 14 or delaying activity until an outcome is known.
First homebuyers are the main section of the property market that will be impacted by an election outcome, as grants and incentive programs are targeted at this buyer category.
Pilkington also says that vendors whose properties suit this buyer profile will be equally interested.