Democracy snags, impact on price growth, and $50m reasons to love footy

This time next week we’ll know the winner of the federal election, be it Anthony Albanese or Peter Dutton. A final YouGov MRO model suggests Labor will retain government with an increased seat count, while the Libs are tracking for their worst result in 80 years. Still, Mr Albanese remains coy about predicted results, reminding us all that there’s not been a sitting prime minister re-elected since 2004. While Mr Dutton has used one of his final media conferences to describe this election as, “a referendum, not about the election campaign but about the last three years of government”. 

People are quick to forget the past. With petrol prices bearable for now and multiple interest rate cuts on the horizon, I would say that life for most Aussies seems more manageable than it did a mere six months ago, regardless of the overseas turmoil which appears to be playing in Albo’s favour.

I won’t bang on any further about politics, there’s a solid chance most of us are over it, however I’d like to remind you of the availability of democracy sausages when voting this weekend. The democracy snags are like Easter’s hot cross buns in that they only taste as good as they do because of their limited availability. 

As for the housing market, regardless of who gets across the line on Saturday, there won’t be an immediate impact on real estate. Ray White’s House Price Report for April shows Brisbane house prices increased by 0.4% for the month to reach a median of $1,024,625, representing an annual growth of 7.3%. 

Ray White chief economist Nerida Conisbee says several factors suggest even stronger conditions ahead.

1. Interest rate cuts: With markets pricing in multiple cuts beginning in May, borrowing capacity will increase, supporting further price growth
2. Global uncertainty: Financial market volatility will likely drive investors toward the relative safety of residential property
3. Supply constraints: The construction industry’s ongoing challenges will limit new supply, supporting existing property values
4. Policy stimulus: Election policies targeting first home buyers will inject additional demand into an already strengthening market

Ms Conisbee says the data presents a clear picture: property price growth that began in January has gained momentum through February, March, and now April.

“With interest rate cuts on the horizon and increasing investor interest in the stability of residential property amid global volatility, this momentum appears likely to continue through the remainder of the second quarter,” she says.

There’s something else, dare I say it more exciting than an election, lighting up Brisbane this weekend and that’s the sold-out NRL Magic Round. The annual footy feast is attracting 50,000 visitors to Brissie, who’ll stay an average of five nights each, spending an estimated $50 million. 

Minister for Tourism, Andrew Powell, has summed the weekend up perfectly in saying, “ This is Queensland at its best – hosting world-class events, attracting crowds to fill our local businesses and backing our visitor economy all the way.”

I hope you enjoyed the read.

Matt Lancashire