While elections have traditionally seen the property market slow down as buyers and sellers hesitate in their decisions, prominent real estate professional John McGrath believes this September's federal poll will tell a different tale.
Mr McGrath, CEO at McGrath Estate Agents, told Real Estate Business’ sister title Smart Property Investment that the long lead time before the September 14 election provides some long-term certainty and is a positive for the property market.
“We know the date, [and] there seems to be a level of certainty in the community's mind about the result,” Mr McGrath said.
“And I think right at the moment, we’re seeing so many positive signals and indicators in the property market, I think they’re far more important to consumers than the election cycle.”
Low interest rates, rising rents and an improving economy and share market indicate that the market is ready for growth, Mr McGrath, whose company operates more than 50 offices across NSW, Qld and the ACT, said.
“There seem to be a lot of positive indicators that are saying we’re at the beginning of the next growth cycle. Therefore the election will be at worst, a minor distraction,” he said.
Even the Gold Coast property market, which was one the toughest hit regions in the country post-GFC, is starting to pick up, Mr McGrath continued.
“We’re starting to even see good results in [the Gold Coast] market, and that’s been devoid of any interest, devoid of any buyers. There’s been some very strong buyer enquiry, and strong auction results there over the last six weeks.”
Traditionally, it has been the top end of the market, dominated by professional white collar workers, that has been affected more by a change of government, he added.
However, a change in government in the coming election is likely to bolster the confidence of people looking to buy prestige properties, as the result “will appeal to them”, Mr McGrath said.
While people working in the public service sector in the ACT may have also taken a wait-and-see approach at past elections, Mr McGrath believes the September election is unlikely to have much of an impact on this group.