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Onthehouse.com.au reveals how the election could affect the property market

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1 Aug

Onthehouse.com.au reveals how the election could affect the property market

launch-admin Aug 1, 2013 0 541

Media Release

 

Voting for Property

Onthehouse.com.au reveals how the election could affect the property market

 

Sydney, 1 August 2013: With Prime Minister Kevin Rudd’s announcement of the election looming, Onthehouse is today releasing research regarding the effects of federal elections on Australia’s property market.

Since 1978 there have been 11 Federal Elections. In seven of those elections, data shows that the rate of housing price growth slowed for the three months leading up to the election. Based on this past experience, it would appear there is a higher likelihood that housing prices will have a lower growth rate over the three-month period leading into the election.

The data also shows that when growth does slowdown prior to an election, it is followed by a rise in growth rates after the election. However, in years where growth rates did not slow prior to an election then there has been a tendency for the growth rate to slow following the election.

Onthehouse.com.au spokesperson John Edwards comments: “When taking the data into consideration, elections have clearly had an impact on the property market. We took Sydney data because it was our most robust data set, but when mapping on a national basis the historical data followed a similar pattern.”

Source: onthehouse.com.au / Residex

Historical data on Sydney house values since 1949 shows that:

·       Under Labor Prime Ministers, the average growth in the housing market was 8% pa

·       Under Liberal Prime Ministers, the average growth was 6.9% pa

·       With respect to the data set analysed, former Prime Minister Julia Gillard was in power during the slowest ever period of price growth, with house prices falling in real terms for Sydney housing

·       Although housing values fell in real terms under Labor, this meant that the affordability for potential house-buyers improved

·       The Prime Minister who saw the largest annual rise in house values over their term of office was Gough Whitlam (1972 – 1975).

Edwards added: “Sir Robert Menzies can probably be credited with achieving the best long term sustainable growth rate which saw house prices grow at a rate which kept housing relatively affordable, but provided reasonable growth and will not have distorted the total yield mix. Under the current government the market has had its lowest growth rates since 1949. While this is not good for house owners, it has meant that buyers are more able to enter the market.”

 

Prime Minister

Period of Office

Party

Sydney House Price Growth

Sir Robert Menzies

1949-1966

Liberal

3.77%pa

Harold Holt/

John McEwen

1966-1968

Liberal

9.37%pa

John Gordon/ William McMahon

1968-1971

Liberal

7.86%pa

William McMahon

1971-1972

Liberal

9.78%pa

Gough Whitlam

1972-1975

Labor

16.83%pa

Malcolm Fraser

1975-1983

Liberal

11.43%pa

Bob Hawke

1983-1991

Labor

8.94%pa

Paul Keating

1991-1996

Labor

4.98%pa

John Howard

1996-2007

Liberal

8.66%pa

Kevin Rudd

2007-2010

Labor

5.96%pa

Julia Gillard

2010-June 2013

Labor

0.34%pa

 Source: onthehouse.com.au / Residex

 

– Ends –

Media contacts

Ashford Pritchard: E ashford@launchgroup.com.au  / T 02 9492 1040 / M 0411 020 680

Laura Douglas: E laura@launchgroup.com / T 02 9492 1000 / M 0452 505 859

 

 

About onthousehouse.com.au

www.onthehouse.com.au is Australia’s most transparent and comprehensive real estate portal, empowering consumers to make informed property decisions by providing them with free access to information. Over 1 million unique browsers visit onthehouse.com.au every month to search listings and view in-depth property data, making it Australia’s third most popular real estate platform.

 

Onthehouse.com.au is the flagship consumer offering of Onthehouse Holdings (ASX:OTH), the 360-degree property market services group that provides comprehensive real estate agency solutions, information and analytics services. Onthehouse Holdings businesses together help over half of Australia’s real estate agencies, as well as being used by financial institutions and other property-related professionals.