BY SCOTT AUER, RAY WHITE TINGALPA PRINCIPAL
The recent change of government comes at a time where we have seen significant change in both our economy and the property market compared to the beginning of the year. The government certainly has a job on its hands to maintain a balance between keeping the economy moving while ensuring inflation doesn’t get out of hand.
According to Nerida Conisbee – Ray White Chief Economist: “After the red hot price increases last year, house prices have calmed. We are still seeing growth in most places but that growth is more sustainable and an easier market for people to transact in. Affordability is unlikely to improve significantly this year. While house price growth is calming, rents are on the rise and construction costs continue to accelerate.”
With sustainability being a major focus of the new government there are potentially implications for property to get to net zero, from the way power is generated and how households use it. New builds could be required to have more solar and batteries, while owners of existing homes may be encouraged to retrofit to make them more sustainable.
Getting first home buyers back into the market is a focus for the government, and the changing market is presenting more opportunity for these buyers. The plan is to implement a shared equity scheme where the government would own a 30 to 40 per cent share of a home purchased by a middle or low income first home buyer. Although the scheme may inflate prices, it will allow people to get into the market who would otherwise find it difficult.
