The prospect of the upcoming Federal Election is on the minds of plenty of buyers at open homes in Adelaide’s Lefevre peninsula, according to Kate Smith, Principal of Raine & Horne Semaphore.
“The Federal election seems to be a bigger issue for investors with Labor set to cut negative gearing for established properties and slashing the capital gains tax (CGT) discount from 50% - 25%,” Kate said. “Owner-occupiers at this stage haven’t mentioned the changes.” The lack of awareness among home buyers is somewhat concerning as the Real Estate Institute of Australia (REIA) recently warned national house prices would fall significantly in the event Labor wins the 2019 federal election and implements the controversial policy. REIA President Adrian Kelly, citing a new report conducted by SQM Research, predicted property prices would drop between 5 and 12% on average nationally across the capital cities from 2020 to 2022 under the ALP’s proposal.
Away from the election, downsizers are finding it hard to secure a property in the Lefevre peninsula due to a lack of suitable stock, Kate commented. “There is not a sufficient level of appropriate new developments catering to downsizers, while the retirement villages in the region are oversubscribed to the point where there are waiting lists of 3-5 years.
“Throw in the prospect of paying stamp duty on their next property, and many retirees living in the Lefevre peninsula are staying put in big homes. This situation, in turn, makes it harder for upgraders with growing families to find the right home in this region.”
Despite these obstacles, demand for property on the Lefevre peninsula is very consistent says Kate. “There are plenty of buyer enquiries, and most of our stock sells in 2-4 weeks. However, if a property isn’t priced correctly, it won’t find a buyer,” Kate warned. “Most buyers are Adelaide locals.
The Lefevre peninsula ticks plenty of boxes with upgraders and downsizers as it offers a coastal lifestyle that is only 15 kilometres from Adelaide, advised Kate. “Public transport is improving while the redevelopment of Port Adelaide will bring business and employment to the region.” The redevelopment is expected to generate more than $280 million in private investment, deliver approximately 1,150 new homes for up to 2600 new residents and support about 250 direct and indirect jobs a year during construction[i].