Canberra’s booming property market surges ahead following post-election rates cuts
Canberra’s booming property market became even more attractive following the Federal election, which saw Australians unite to dismiss the abolition of negative gearing and increased capital gains taxes.
The surge on Canberra’s market, which saw sales spike by upwards of 150% in the week following the Coalitions return to Government, will be further buoyed by the RBA’s rates cut to 1.25% on Tuesday.
The big numbers our of Geocon’s sales suite provide a firm indication that buyers held little confidence in Labor’s proposed plans to punish property investors, as the giants of property enjoy a wave of new interest from right across Australia.
Managing Director, Nick Georgalis suggested the Coalition’s approach to retain negative gearing and the status-quo on capital gains tax had encouraged confidence in the market, which was quickly represented by sales.
“For a market which was already experiencing unprecedented demand for high-density, luxury living, it is exciting to see our sales boosted by some common-sense policy presented by the Coalition at the Federal election,” Mr Georgalis said.
“If anything, we’d like to see capital gains tax reduced by 25 percent, not increased. We also believe that reducing people’s options for a self-sustained retirement through negative gearing would severely impact many investor’s ability to retire with wealth.
“Make no mistake – Canberra is fighting through a housing crisis which Geocon is working hard to satisfy. Canberra is experiencing unprecedented population growth and the need for quality housing, near work and places we visit, has never been greater.
“Canberra still has the lowest vacancy rates and highest rental yields across Australia. The ACT continues to be the best option for property investment in Australia.”
Through both sides of the election Geocon has maintained its standing as Canberra’s biggest name in building, property development and growing personal wealth.
Mr Georgalis said interest in Geocon apartments was so strong following the election he would reassess all incentives programs in the new financial year.
“We have been overwhelmed by the response to our EOFY Property Bonus, which has to end 1 July,” he said.
“We’ll be assessing the overall requirement of incentive programs given the strength of the market come 1 July.”