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THE INDUSTRY WEIGHS IN ON SENTIMENT POST-ELECTION

Property Markets / Outlook

Australia

May 29 2019

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The lead up to any election poses a time of uncertainty, with buyers understandably sitting on their hands until they know which party will be instated into government and which policies will affect their household. 

This election was no different - not only did every poll and industry commentator suggest Labor would win the top job, but property market sentiment had plummeted to levels not seen in over a decade. 

But since the shock result earlier this month that saw the Liberal party retain power, reports on the ground suggest that sentiment has bounced back stronger and swifter than ever before. 

From residential land lots, off-the-plan apartments and established homes through to commercial markets, the pendulum seems to have shifted. 

Here, five industry experts weigh in on the sentiment post-election and what this means for the market in the near future: 

Peter Grant, Director RPM Group 

“ With confidence back in the market we’re seeing projects recording more sales in the last few weeks than they’ve seen in the last few months combined. Buyers in Melbourne’s land market who had waited for the federal election, price corrections and confidence to return now have all three, and are committing to purchasing before the next upward cycle commences.” 

Leonard Teplin, Marshall White Projects Director. 

“ Our success rate at auction last week was 64 percent, the highest seen by Marshall White since August 2018, while the average bidders per auction was the highest of any weekend in 2019 at 2.8 per dwelling. 

“ Across the business, the total numbers inspecting established property increased by 16 percent last weekend, a significant and immediate increase post-election. 

“ Similarly, the volume of enquiry for off-the-plan property over the last seven days has increased 18 percent. 

“ Anecdotally, 1 in 5 buyers who we spoke to last week who had previously stated they were “Waiting to see”, have now indicated they are prepared to actively re-engage.” 

Scott Orchard, Director, CBRE Melbourne Middle Markets 

CBRE’s Commercial division has seen a significant jump in enquiries in the week following the election, with the total enquiries sitting at 198 for the week, up from an average of 80 in March and 118 in February. 

“ The last seven days have arguably been the most interesting for the commercial office sector of 2019. 

“ Since Scott Morrison has retained government, we have observed a noticeable change in market sentiment and enquiry levels. The influx of buyer enquiry has been significant when compared to the early months of the year. 

“ There is a general sentiment of tenants, owners and landlords wanting to ‘get back to business’ with a number looking to pursue further acquisitions or take advantage of the current pricing levels. Many are already factoring in an interest rate drop and are strategizing their portfolio needs accordingly.” 

Luke Berry, Director of Sales + Marketing for Thirdi. 

People measure the mood of a market by a range of things and for Thirdi Group, a Sydney based development firm, one of their key indicators is ‘appointments’. Since the election Thirdi has seen a 200% increase in appointment requests across their Sydney projects which is a great indication that clients are now ready to transact and make decisions on investing in property. 

Luke Berry, the Director of Sales & Marketing for Thirdi said “It may just be a coincidence, however it seems that with the election out of the way and some stability now in government, many of the potential buyers that were once sitting on the fence and waiting to see what happens are now confident to have that serious conversation about proceeding with a purchase. 

“ I know it’s an early call, however this is a great indication for what lies ahead and for developments like ours that are located in good areas and nearing completion I think the market will be surprised how quickly they will be snapped up.” 

Andrew Leoncelli, Managing Director CBRE Residential Projects Victoria 

“ We have seen an immediate shift post-election with web traffic across Melbourne Square in the CBD and M City in Clayton spiking 300 percent last week, while Melbourne Square also recorded 13 sales over the weekend – the highest number of sales achieved in a single weekend for over nine months.” 

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