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The ScoMo Effect: Outer Brisbane Singled Out as Growth Area

The ScoMo effect: The cities where house prices are expected to surge by $40,000 after the Coalition’s shock election win

  • Coalition election victory means no changes to negative gearing or capital gains
  • Investors are already interested in getting into the market again as a result
  • Scott Morrison also promised first home buyers would only need 5% deposit
  • Outer Brisbane and Adelaide and Geelong singled out as growth areas

The surprise re-election of a Coalition government could boost house prices in affordable suburbs in cities outside of Sydney and Melbourne within the next year, property experts say.

Daniel Walsh, the founder of the Your Property Your Wealth buyers’ agent, said the voters’ rejection of Labor’s negative gearing and capital gains tax policies was already spurring confidence in real estate.

Brisbane is tipped to benefit the most with a four to six per cent surge in prices in the next year followed by Adelaide and Geelong which are expected to increase by three to five per cent.

Affordable suburbs with high rental yields will be the biggest movers in the next 12 months.

‘Just today we’ve had a dramatic increase in inquiries,’ Mr Walsh told Daily Mail Australia.

Scott Morrison promised no changes to negative gearing or capital gains discounts, which Labor promised to slash, so house prices are expected to rise

Mr Walsh said economic confidence was set to rebound ‘now these crazy policies about negative gearing aren’t going to be coming in’.

During the past year, Brisbane’s median house price has fallen by 1.8 per cent to $532,308, CoreLogic data showed.

Mr Walsh said houses now selling for between $350,000 and $650,000 were likely to increase by four to six per cent during the next year, which could see prices climb by close to $40,000.

In the Queensland capital, it is possible to buy a house at Chermside, 9km north of the CBD, for just $600,000.

‘We’re seeing that Brisbane is top of the food chain right now,’ Mr Walsh said.

‘It is the most affordable compared to the wages and it has room for growth

‘That’s why we believe, that going forward over the next three to five years, Brisbane’s going to be that market.’

Demand would surge for houses with a backyard but not for apartments from both investors and families with young children.

‘Anyone who’s a first-home buyer in Brisbane, generally they’re looking now at having a family – they’re going to be looking for house and land and somewhere that’s affordable,’ he said.

‘The investors are going to be looking for yield and then also proximity to services like transport and infrastructure as well, anywhere between 15 to 45km out of the CBD.’

In Queensland, first-home buyers get a $7,175 stamp duty discount.

Source: Article by Stephen Johnson for Daily Mail Australia
URL for full article: https://www.dailymail.co.uk/news/article-7050083/Where-house-prices-surge-Scott-Morrison-victory.html