Real estate agents report spike in inquiries and market confidence after Scott Morrison’s election win | The West Australian
Property investor activity has increased after Scott Morrison’s Federal election victory, with real estate agents reporting they are receiving double the number of inquiries from buyers.
Real estate agents told The West Australian there was an increase in market confidence after the Prime Minister’s election win, with buyers no longer fearful that Labor’s negative gearing policy would cause prices to fall. Under Labor’s plan, negative gearing was to be limited to newly built housing.
Real Institute of WA president Damian Collins said while Labor’s policy had a grandfathering clause which allowed those who were already negatively gearing their properties to be able to continue to do so, it had created uncertainty in the market.
Mr Collins said at his own agency he had double the amount of inquiries this week compared with before the poll.
He said like the rest of the country, “90 per cent” of investors and buyers had assumed Labor would win government which meant its negative gearing policy had a bigger impact on the market than when it took it to the election in 2016.
“It was keeping people out of the market,” Mr Collins said. “We’ve certainly noticed in our office the phones are picking up again.”
He said Mr Morrison’s re-election, combined with APRA’s announcement it could loosen home loan rules — plus the Reserve Bank’s plan to cut interest rates — would likely deliver a “spike” in sales.
ABN managing director Dale Alcock said even though the policy had been limited to established homes it was also putting investors off new builds.
“A lot of people have a healthy mistrust in politicians, so even though Labor had suggested new-build homes would be exempt there was a lot of nervousness,” he said. Mr Alcock said the re-election of Mr Morrison and the recent WA State Government changes to expand their Keystart home loan program would deliver a “shot of confidence” to the property market which ultimately would help prices recover.
Ray White real estate agent Brent Compton also believed confidence was returning.
“Every single person I’ve spoken with is very happy the negative gearing conversations are no longer relevant,” he said.
This content was originally published here.