Real Estate

How the federal election is impacting the Gold Coast property market

GCB House and Land feature - Gold Coast generic
Written by The ReReport
As seen in the Source link, written by on 2019-05-16 00:00:00

Agents on the Glitter Strip are bracing themselves for potential changes to the property market after the election.

As voters head to the polling booths this weekend, Gold Coast real estate agents are bracing for what could be a huge disruption to the property market.

Labor’s proposed plans to abolish negative gearing on existing dwellings has been the forefront of concern for agents.

And the effects of the election are starting to hit with agents reporting quieter conditions in the lead up to voting day, interrupting the solid start to the year the Gold Coast had.

The election has already disrupted the strong start to the year the Gold Coast market had.

However, real estate heavyweight and Ray White Surfers Paradise CEO Andrew Bell said there could be a post-election surge in activity.

“We should expect to see a flurry of activity before any laws are legislated through the senate and this will add to the buying activity that has been demonstrated through very successful and well attended auctions throughout the first four months of the year,” he said.

His agency are hoping to capitalise on the surge at their annual mid-year auction event on June 20.

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Mr Bell said interstate buyers will help the Gold Coast market if Labor are elected.

“With the poll out of the way, the fundamentals that have driven the local market for the past couple of years, including the strength of interstate migration, will not have changed,” he said.

“Interstate buyers who are new to the Gold Coast are impressed by how far their dollar stretches here and that should continue to support our market for some time yet.”

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REIQ Gold Coast zone chairman Andrew Henderson said Bill Shorten’s negative gearing reforms could be detrimental.

Real Estate Institute of Queensland (REIQ) Gold Coast zone chairman Andrew Henderson said he also expected activity from investors to pick up after the election if there’s a change in government.

But he has grave concerns if Labor’s policy, where negative gearing would only be available for investors buying newly constructed property, were to come into play.

The changes are set for January 2020 and Mr Henderson said it could be detrimental.

“Simply put, this is a lose-lose policy,” Mr Henderson said.

“The Queensland government has already announced a shortfall of $1.32 billion revenue in stamp duty due to falling house values and transaction volumes.

“Wholesale changes to negative gearing arrangements could not come at a worse time and will be simply devastating for Queensland.”

SQM research found rents could rise by 22 per cent if the reforms are introduced, in turn, forcing tenants out of established suburbs.

“Most tenants would prefer to live in houses already constructed in established suburbs but rental properties in these areas will dwindle because investors will shy away from buying existing properties,” Mr Henderson said.