Ensure you never miss an issue of the
real estate business bulletin
Property market hinges on jobs security, election

Property market hinges on jobs security, election

by Simon Parker 0 comments

Simon Parker

Lingering concerns about job security and the upcoming federal election could undermine growth in the Australian property market in 2013, LJ Hooker has claimed.

“Domestically there are a couple of wild cards that could limit the amount of confidence, such as the election and even dialogue between the various parties,” said LJ Hooker deputy chairman, L. Janusz Hooker.

“Employment has strengthened recently but we just don’t know yet what will happen, given most major companies have forecast reduced capital expenditure.”

Mr Hooker said the housing market would only improve if buyers regained confidence, and while he expects the Reserve Bank to cut the official cash rate by another 50 basis points through to June this will not be the `holy grail’ to driving the property market.

Mr Hooker’s sentiments mirror those of Australian Property Monitors (APM) senior economist, Dr Andrew Wilson. He said low interest rates would do little to stimulate the local property market while governments cut back on spending and consumer confidence remains weak.

On a positive note, Mr Hooker said Australia’s lack of housing and population growth – with an expected net migration of around 250,000 people in 2013 – could put pressure on property prices.

Rents are also forecast to continue to grow, he added, which should attract more investors.

“People have been sitting on the sidelines waiting to see what happens and there is pent up demand from buyers at all levels," Mr Hooker said.

“It won’t be a mad rush but you will see prices going up and sale volumes will move up towards trend by this time next year.”

The luxury high-end market is expected to be the first to enjoy price recovery having been hit the hardest by the downturn, he continued.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Property market hinges on jobs security, election
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?