Investors wait for election
PROPERTY market insiders are predicting a slow down until after the Federal election polling day on August 21.
Ray White Gladstone principal Andrew Allen believes that with an election looming, interstate buyers will shy away from making investment decisions until after the poll.
“Traditionally, we tend to see a reduction in enquiry in the lead up to state or federal elections,” Mr Allen said. “Unfortunately, uncertainty around the government creates anxiety in some circles and this tends to cause many to procrastinate about a property decision.”
Mr Allen believes that although this may be bad news for property owners hoping to cash in on recent positive announcements regarding Gladstone's up-and-coming LNG industry, the pause in the market represents an opening for opportunistic buyers.
“These are the times when great property portfolios are built,” he said.
“For those who are just trying to break into the market, now is as good a time as any.”
Compounding the effects of a federal election the Reserve Bank of Australia (RBA) has warned that it is prepared to raise interest rates further if inflation remains high.
In Sydney on Tuesday, RBA Governor Glen Stevens signalled that he was not afraid to raise interest rates just as he did before the November 2007 election.
“The board will meet, consider all the issues for the economy and do its job,” he said.
Recent movements in the market have seen median prices return to 2007 levels and with a final investment decision regarding the British Gas LNG project rumoured to occur in October, property forecasters are again signalling significant capital growth for the Gladstone marketplace.