Early federal election could create 'spring boom' for property market: experts


14 July 2010

 

Early federal election could create 'spring boom' for property market: experts


In recent times federal elections have been held closer to year end, and if the past four elections are any indication*, October and November are typically the months of choice for Prime Ministers.

However, should the Federal Government pull the trigger on an extremely rare August poll, as many political pundits are predicting, several leading property experts suggest it will provide the Australian property market with a significant shot in the arm.

While not predicting an early election, Angus Raine, CEO of leading property group Raine & Horne, said Australians were generally wary of buying or selling a home in the lead-up to a federal election.

“Generally we tend to wait until the election is decided just in case there are any unforseen surprises,” Mr Raine said.

“If the election is brought forward to August, this represents the perfect timing from our point of view, as winter is typically a quieter time for property sales.

“An early poll will enable vendors to list in August or earlier and won’t affect buying aspirations through the traditional spring selling season.

“However if the Government postpones the poll to October or November, then it’s fair to expect buyers to put ownership plans on hold until late 2010 or early 2011 which has been the trend in the past."                      

Kent Lardner, chief operating officer of PriceFinder, agreed that based on past experience, a winter election would have an effect on the property market.

“Sales numbers tend to decline during a federal election,” Mr Lardner said.

“Most buyers and sellers tend to hold over until after the election as it’s traditionally been a bad time to sell or buy property.

“This, coupled with the threat of another rate rise and the aftermath of the first home buyers grant, will see the property market on hold.”

Raine and Horne Dubbo principal Grahame Allan agreed that election speculation usually trended towards a slight downturn in the property market.

“The good thing about an early election is that once it’s over, come springtime we will notice a spike in the marketplace – we are expecting a great few months in the lead up to Christmas,” Mr Allan said.

“An early election might not be great news for home owners looking to sell in the next couple of months, although it does give first home buyers valuable time to build a bigger deposit."

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

*Last four Federal Elections

24 November 2007

9 October 2004

10 November 2001

3 October 1998

(Source: http://australianpolitics.com)

For further media information contact:

Angus Raine, CEO Raine & Horne on 02 9258 5422 or 0409 920 697.

Rebecca Williams, National Systems & Support Coordinator, Raine & Horne on (02) 9258 5410.