Decisive federal election result will help Australian property markets: Analysts

This year’s federal election is likely to have positive impact on the property market, provided it delivers a decisive result, according to industry experts.

The next federal election must be held by November 30.

Brett Draffen, chief executive of development at Mirvac, says he is “personally quite confident that we will see a positive out of the election".

“It really goes to that question of consumer confidence and sentiment.

"And I think the opportunity is that we start to see a clearer leadership profile coming from that federal election and that will then flow through to confidence and then have a flow-on impact on transactions and therefore prices,” Draffen said in an interviewer on Australian Financial Review TV.

But property market activity could slow in the months leading up to the election.

“Prior to the election people get a bit more nervous,” says Rod Cornish, real estate strategist Macquarie Capital.

“A month or two prior to the election things do tend to slow down,” he says.

“And then if it is reinforced, if there is a distinct change in power, then people could become more confident."