Elections. It’s no secret they have an impact on the Sydney property market, and indeed, the whole country.
And with the current global uncertainty and a federal election heading our way soon, you may be wondering what it might all mean for buyers like you.
Let’s unpack it to help you figure out if now is a great time to buy.
How uncertain is the Sydney property market right now?
Currently, we’re seeing Trump making waves all over the shop – and many of us are watching in interest over how that shakedown will affect interest rates, global equity markets and closer to home, real estate.
“There’s no doubt the cage has been rattled,” says R&J’s managing director, Byron Rose. “And while real estate is an important facet and factor in many people’s wealth, it’s not a liquid asset, so it’s one of those markets that doesn’t react overnight.”
Rose adds that when Trump first got elected, there was a strong economic view and a feeling of just getting on with business. “Then the last couple of weeks everyone’s been more, ‘Hmm, what’s going to happen next?’ And that leads to a sentiment of waiting and seeing in the property market,” he explains
Do elections cause the market to slow right down?
A slower market is definitely something buyers agents see every time there’s a state or federal election, says Rose. “Generally, we see people press the pause button because we don’t know what’s around the corner – and that’s something we expect to happen until we know who the new prime minister is or the new state premier, if it’s a state election.”
That said, right now there are still plenty of listings, and lots of buyers looking, but it’s not translating to lots of buyers in the auction room.
“For example, say there’s a property in Paddington and the agent has 30-40 inspections on the first weekend, then by the end of the three-week campaign, they’re only getting 3-4 people through on the Saturday before the auction, and the auction’s mid-week with on two registered buyers. We’re seeing that same story over and over at the moment – lots of inspections, 2 buyers and lots of pre-auction deals going on.”
How soon might the Sydney property market bounce back, post-election?
While many experts say it can take months for property markets to recover post-election, Rose says in many cases, they’ve seen the market pick up again immediately.
However, it depends on the policies tied to the new candidate, too. “If the candidates are proposing structural shifts in investment or property investment or taxing the principal place of residence, which is something that is circulating out there, it would have a genuine and definitive impact on the real estate market,” he adds.
But because of Trump and world events bringing a level of uncertainty, Rose says he’s not sure how quickly we might bounce back.
“There’s a lot of noise out there globally and while Australia is isolated to a degree, we’re not immune to everything. The sentiment we’re seeing is a lot more ‘Maybe I’ll wait and see what happens globally before I make that purchasing decision’. So I think, post-election, everyone will still be standing at the gate but not ready to step through just yet.”
Want our help? If you’re buying property in Sydney right now, Rose & Jones buyer’s agents would love to chat to you. We have over 27 years’ experience in New South Wales and Queensland, and can help you secure your dream property at the right price and terms.
To learn more and get started, contact the team at Rose & Jones today.
About Rose & Jones
Rose & Jones has been helping clients find and purchase properties in Sydney, Brisbane, and the Northern Rivers since 1998. A renowned property buyers agency across residential, commercial and industrial sectors, every one of our property experts meets our high standards, so you won’t have to compromise yours. With access to a wide network of off-market properties, our team can help you find the perfect property. Also offering property management services and investment advice, make Rose & Jones your go-to when it comes to real estate in New South Wales and Queensland.
