New govt brightens outlook for property market

It’s only a week since National won the election. But John Ross of The Professionals, Hutt City has noticed a more positive air to the market after the typical four to six-week slowdown leading up to the election.  

“The only election that didn’t have any slowdown effect was the previous one where we were in the middle of the biggest boom seen for decades. It’s no surprise to see a return to a positive market right now.”

Ross says any government that can bring back greater confidence to real estate has to be positive. “Whether that’s through lower interest rates, guaranteed banking deposits, higher employment, more money in people’s pockets through tax cuts – any of those things you would think would help with confidence.”

Bayleys Wellington director, Rohan Hill says buyers and sellers no longer have the excuse of waiting to see what happens after the election. “Having a stable government with strong fiscal policies and greater tax breaks in place should bring back some stability to the economy. That will, in turn, give confidence in being able to buy a new home.”

John Stewart of First National says the removal of another uncertainty in the market through the election is positive.

“Along with the American election, the settling of the government guarantee of banks, the support structures to minimise damage through job loss and possible mortgagee sales and so on, all assists in settling things down.” He expects increasing numbers of people feeling more comfortable making a sale and/or purchase decision.

More specifically, Ross says one of the most exciting things to come with the new government is the review of the Resource Management Act. “To streamline that process and cut out the nonsense, to bring common sense back will make development cheaper, faster and more attractive.”