SA market needs an election result

SA market needs an election result

Posted on Monday, March 17 2014 at 1:06 PM

South Australian real estate needs an election outcome for momentum to continue, according to the Real Estate Institute of South Australia (REISA).

REISA president Ted Piteo says
the market slowed during the campaign and a result is required to stimulate confidence.

“When we look back over the last
couple of months certainly stock on the market has dried up and people are
waiting for the state election to be over.”

One party needs to win 24 seats
to govern outright, but reports suggest a projected tally of 23 seats for the
ALP and 22 seats for Liberal.

This result will mean Independent
MPs Geoff Brock and Bob Such will hold the balance of power.

The Independents
plan to reserve their decision until the counting of pre-poll and postal votes
is completed in any undecided seats.

Piteo says the property market
was showing signs of revival late last year on the back of low interest rates
and increased confidence.

“I think the last three or four
months of last year was really good for us. There is still a lot of buyer
confidence out there (now), but sellers seemed to have gone shy.”

He says while the election may
have stalled price growth, there are other impacts on the state’s real estate.

“I believe it’s a combination of
factors… when you start talking stamp duty and all the rest of it, I think it’s
started putting a few people off.”

Piteo says property wasn’t really
on the agenda for either party in the lead up to the poll, with a Liberal
announcement on land tax being a bandaid solution for a bigger issue.

“The Libs were the only ones who
said they’d love to adjust the land tax rate and cap the council rates… but it
really wasn’t anything that was critical to what we do and don’t do.

“Showing a bit of tokenism to say
‘We’re going to reduce it (taxes) by decreasing the rate of stamp duty for
first homebuyers’ doesn’t really go far enough.”

Piteo says his industry body
would welcome the chance to discuss real estate policy in more detail with whoever
forms government.

“We appreciate any assistance as
far as land tax or stamp duty relief, but post-election irrespective of who’s
there, the big campaign for us is state taxes.

“I would love to sit down with
them and have a discussion.”

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