Table of Contents
Why Do Elections Affect the Property Market?
What Role Do Policies and Interest Rates Play?
What Happens to Property Prices After Elections?
Should You Buy or Sell Property During an Election Period?
How Elections Affect Mosman, Neutral Bay, and Lower North Shore
How elections affect the property market,they can also influence the property market, creating shifts in buyer confidence, seller behaviour, and overall activity. Whether it’s a federal, state, or even local election, many property owners and investors find themselves asking: How will this affect the property market?
At Axios Real Estate, we’ve experienced many election cycles and understand how they affect the Sydney property market, especially in the Lower North Shore suburbs like Mosman, Neutral Bay, Cremorne, and Kirribilli.
Why do elections affect the property market?
The biggest factor is uncertainty. Uncertainty often causes both buyers and sellers to pause. They prefer to wait until after the election when policy directions become clearer. During these periods, we typically see:
A decrease in the number of properties listed for sale.
Buyers taking a ‘wait and see’ approach.
A slight softening in auction clearance rates.
Buyers and sellers are naturally cautious about making large financial decisions when potential changes to tax policies, housing regulations, or government incentives are unclear.
Government policies and property trends
Another reason elections affect the property market is the potential for policy change. Political parties often propose changes that directly or indirectly influence the real estate sector. These may include:
Changes to negative gearing and capital gains tax.
Adjustments to stamp duty or introduction of first-home buyer grants.
Proposals impacting rental property regulations or vacancy taxes.
When buyers or investors feel a new government may introduce property taxes or limit investment incentives, demand can slow temporarily. Alternatively, if policies are seen as favorable to the property market, confidence often rebounds quickly.
Interest rates, economy, and election impact
While elections don’t directly change interest rates, the economic outlook influenced by a new government can affect market confidence. For example:
A government promising to stimulate the economy may boost buyer sentiment.
Uncertainty or expected policy tightening could cause hesitation among buyers and investors.
Any effect on inflation could indirectly influence mortgage rates, further affecting property prices.
What happens after elections?
Historically, the Sydney property market tends to return to normal once an election has passed. Confidence typically returns, and any postponed transactions are often completed shortly after. Especially in highly desirable areas like Mosman, Kirribilli, and surrounding suburbs, there is often a backlog of demand post-election.
Buyers, sellers, and investors regain certainty once the new government is in place, and the market tends to quickly stabilise.
How does this affect the Lower North Shore property market?
In premium areas like Mosman, Neutral Bay, Cremorne, and other Lower North Shore suburbs, the fundamentals remain strong:
High demand for quality properties.
Limited supply of family homes and investment apartments.
Consistent rental demand regardless of elections.
While an election may slow the market briefly, these suburbs usually rebound quickly because of their long-term desirability.
Should you delay property decisions because of elections?
Not necessarily. While elections affect the property market in the short term, the right property will always attract interest, especially in tightly held markets like the Lower North Shore. Whether you are buying, selling, or managing an investment property, your decision should be guided more by your personal goals and property fundamentals than by political cycles.
Many property owners often wonder how elections affect the property market, especially when buying, selling, or managing property in tightly held suburbs like Mosman, Neutral Bay, and the Lower North Shore. According to CoreLogic’s 2024 Property Market Report, election periods often cause a temporary slowdown as buyers and sellers wait for clarity. However, history shows that activity usually rebounds strongly once certainty returns. For more tailored advice on navigating market shifts, visit our Mosman Property Management page to see how we can assist you.
At Axios Real Estate, we continue to successfully transact before, during, and after elections, ensuring our clients make informed decisions based on real market trends, not just headlines.
Final thoughts
If you are considering buying, selling, or leasing property on the Lower North Shore, don’t let elections stop you. While elections affect the property market temporarily, the fundamentals — location, demand, interest rates, and supply — remain the strongest forces shaping property prices and investment opportunities.
Feel free to contact us for advice on navigating the market during election periods. We are here to help.
