ScoMo's election win boosts real estate confidence

Real estate agents say ScoMo's election win trumps rate cut in boosting market

Luke Carter

REAL estate agents agree on one thing, the federal election result, rather than a 0.25 per cent cut in interest rates, was likely to have the greatest positive impact on the property market.

That judgment holds true whether north of the Maroochy River, south of the Mooloolah or smack in the middle between the two.

Harcourts Caloundra principal Luke Carter has been inspired by not just the election result to shift cash back out of the bank and into investment, today signing $985,000 contract on a Shelly Beach property.

He's also been motivated by Westpac's 0.35 per cent interest rate cut for interest-only loans to what was a predominantly investor market for that product.

Mr Carter was confident cash buyers flowing out of southern markets with big budgets and borrowers would ultimately put pressure on supply and return price growth to the market.

"There's been a definite change in sentiment (post the election),” he said.

"Landlords who were thinking to sell now aren't. I had a unit with a seven per cent yield that attracted no offers in seven months which has now sold.”

So too has a Battery Hill listing for $299,000 returning $400 a week in rent which previously couldn't attract interest.

Mr Carter said prior to the election people lacked confidence.

He now points to a Golden Beach property which has sold for $1.17m, the highest price in the area for five or six years, a new $2m plus benchmark in Pelican Waters and another for just shy of $5 million at Moffat Beach.

In Mooloolaba Kevin Annetts of Kevin Annetts Real Estate was also certain the election result had brought confidence which coupled with the rate cut he said could only generate market confidence.

Interest was emerging from all sectors including professionals, retirees and families.

Groups of ten from all over Australia and the world were lining up to inspect rental properties at Harmony while buyers were predominantly out of Queensland's south east.

"There's more confidence and inquiry which you would think would lead to more sales,” Mr Annetts said.

The market however remained price sensitive with a gap emerging between offer and expectation.

"Vendors need to decide if they want to sell.”

North Shore Realty director Jay Pashley (right) with Sunshine Coast councillor Steve Robinson at the launch late last year of Latitude Coolum Beach development says market confidence is returning. Picture: Erle Levey

North of the Maroochy, Jay Pashley of North Shore Realty agreed the election has had the greatest impact on the market.

"Only two weeks post the election the market feels positive,” he said.

"It shut down before the election so now there has to be pent up buyer and sellers.

"New listings are attracting interest and inspection. Since Christmas pricing has pulled back a touch but my gut feeling is the Sunshine Coast should go strongly over the next couple of years. There's too much going on.”

Former Real Estate Industry Queensland Sunshine Coast zone chair Amber Werchon of Amber Werchon Property said there had been more positivity and inquiry had definitely spiked.

"That was a huge positive for the property market,” Ms Werchon said.

She said the interest rate cut would also help in a market she described as inconsistent.

Ms Werchon said overall there was optimism with the affordable housing market strong while premier properties in secondary locations and the small unit market not so.

"Position, position, position still plays strong,” she said.