With election silly season well and truly over, the ramifications of the changing political parties is creating a stir among Australians – particularly about what the future of the country holds in terms of the economy. With concerns for the economy comes the inevitable question of the property market – will the property market be affected by the election?
The Good News
In general, the Australian economy is in good shape, with low unemployment, low interest rates and low inflation. Additionally, our population is growing, and the rest of the world economy is continuing to recover from the crises of the past five years or so.
All of this means that, whether it’s the Labor or the Liberal Party that stays in power for the long run, the Australian property market should, ideally, continue to experience stable growth.
The Bad News
If there is a potential spanner in the works, it’s not so much this party or that one winning on Election Day, but the election of an unstable government that cannot hold the floor in the House of Representatives for a full three years.
With recent turmoils in the Labor Party, the general unpopularity of both major party leaders, the slew of new minor parties on the ballot, and revolts on all sides over issues such as coal seam gas mining, marriage equality and asylum-seeker policy, an unstable government, possibly resulting from another hung parliament, remains a real possibility.
That’s an outside chance, but it’s certainly not unthinkable in the current political climate. Provided this possibility can be avoided, the Australian property market should continue to grow for the foreseeable future.