Federal Budget 2023: Impact on local real estate market

The Federal Government delivered their budget last night with the following highlights:

• First surplus forecast in 15 years, mainly due to higher mining royalties and higher tax revenue from the high employment rate;
• A range of spending announcements that are designed to assist with cost-of-living pressures while being mindful of not provoking inflation;
• Rent subsidies increased, Centrelink payments increased and utility bill assistance measures;
• Build-to-rent initiatives to encourage more investment in housing supply to the rental market.

What does this mean for real estate in our area?

I have mentioned over the past few months that Sydney buyers have been returning to our market as many of them felt interest rates had peaked and they had waited long enough.

There is also now a shortage of houses for sale, so we are seeing stronger prices from the increased competition amongst buyers. This is especially the case for those new or completely renovated properties. A case in point is the sale of 60 Beach Drive, Woonona for $6.2m last week by Adam McMahon from Dignam Real Estate (second highest price achieved in Northern Illawarra).

Despite the surprising rate rise last week, there still seems to be a consensus amongst buyers that the rate-tightening cycle has run its course.  Now the Budget has been delivered with a particular emphasis not to stoke inflation, we should see these buyers maintain their confidence and willingness to purchase in our area.

About the author

Ian Pepper has had a long and distinguished career as a finance and real estate professional. Originally trained as a Chartered Accountant in 1995, Ian worked in Sydney and London. He has an MBA from Macquarie Graduate School of Management and now sells real estate with Ray White Helensburgh. Ian also volunteers with local community groups including school P&Cs, sporting clubs and business chambers.

Ian advertises in the Illawarra Flame, follow him on Facebook and Instagram