Experts predict Australia's property market is likely to bounce back after Scott Morrison's unexpected re-election
- The Coalition government is expected to make three rate cuts throughout year
- It is also expected to loosen lending regulations which individuals need for loan
- The lower assessment rates could make home loans more accessible for buyers
The unexpected re-election of Scott Morrison as Prime Minister is likely to boost Australia's property market, experts have claimed.
The Coalition government is expected to make up to three rate cuts and loosen lending regulations making the market attractive to home buyers - as property prices in Sydney and Melbourne have slumped to 2016 levels.
It has proposed to reduce the minimum interest rate which individuals need to meet, making loans more accessible.
Belle Property sales executive Marina Makhlin told Nine News that both buyers and sellers were apprehensive about what a Labor victory would mean for the economy.
'People really didn't know how it was going to affect them and I think that fear was really holding people back from making any decisions, any buying or selling decisions,' she said.
The coalition government is expected to make up to three rate cuts and loosen lending regulations (Pictured: Prime Minister Scott Morrison and his family)
The Coalition government is offering a loan offer in which first time buyers can buy a property with a deposit of five per cent instead of the usual 20 per cent.
This weekend has proved to be a strong indication of where the market will be going as 2000 homes have been placed on auction in Sydney - 50 per cent more than last weekend.
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Property prices have fallen 7.2 per cent in the past 12 months, CoreLogic data revealed.
Sydney median prices last month were around $780,000 while Melbourne homes were at an average of $622,000.
Belle property sales executive Marina Makhlin (pictured) said people have been holding back from buying and selling
Economist Jason Murphy said the jump in the number of auctioned homes was a result of the Coalition victory.
'Negative gearing changes are out and the change to the capital gains tax are not happening,' he wrote for news.com.au.
'These are likely to have a positive effect on prices, but how big will it be?'
The Australian Prudential Regulation Authority have suggested lowering the minimum interest rate buffer, which is used to determine whether a buyer can meet repayments on a higher rate.
Senior economist Bill Evans told The Guardian he suspects the Reserve Bank of Australian will announce a cut of 0.25 per cent at its next meeting on 4 June.
The three rate cuts, which could be made this year in June, August and November, would increase employment and the economy.
Lower assessment rates could make home loans more accessible for potential buyers (file image)
- Nine News Sydney on Twitter: "First, it was the stock market, now it looks like Sydney's property market could also bounce back after the Morrison Government's re-election. @alicemonfries #9News¿ https://t.co/zvXNUX8KF5"
- Reserve Bank of Australia will cut rates three times this year, economist says | Australia news | The Guardian
- www.news.com.au/...
