The Sydney real estate downturn has had a negative impact on homeowners in the city's central suburbs, with electors occupying marginal seats among those most affected by declining property values.
According to Domain's recent data, one in five federal constituents in New South Wales experienced double-digit home price declines in 2018, with Bennelong's Liberal seat registering the largest decline. The median of the electoral district decreased by 16.3% from one year to the next.
The largest declines were recorded in electoral districts whose average housing value is between $ 1 million and $ 1.5 million, said area economist Trent Wiltshire. Nine of the 15 most impacted voters, as well as the marginal seats of Reid and Banks in Sydney, were elected by the Liberal Party.
"These are the most expensive areas, but not the most expensive ones," Wiltshire said. According to the economist, homeownership rates were generally higher in the Liberal seats, because of higher income levels and an older population.
On the other side of the fence, Labor voters were mainly made up of tenants, who experienced a worsening fall in the price of apartments.
The west, northwest and southwest of the city record the largest unit price declines. Fowler's headquarters – which covers the Liverpool area – was the hardest hit with an annual decline of 11.5%.
Marginal Labor seats in Lindsay, in the west of the city, and Macquarie, covering the Blue Mountains, as well as Banks' Liberal seat, were at the top of the list of areas where unit price falls were the strongest.
The estate reported that buyers in the area were most concerned about the election and by the possible changes made to the negative gear and by the reduction in tax on the over- if the Labor Party won it.
"Many people [in the Liverpool region] are wondering what it means, how is it going to affect me and how is it going to affect the market. This is really an important issue for buyers, and rightly so, "said Dean Jr Boskovic of BOS Realty.
Buyers of a first home in the area approve the abolition of negative gear, but investors and owners want the policy to remain in effect.
"[Boskovic] [that the] stated that the concern about falling real estate prices was such among locals that he was expecting a reversal of the movement Labor, especially since the election of the NSW had already had a shift to the Liberal Party, said Domain in their report.
Bennelong voters, under Liberal control, recorded the biggest negative impact on real estate prices, and elections were at the center of sellers' concerns.
In Wiltshire, voters with a higher proportion of tenants would likely be open to the idea of ​​any tax changes related to housing.
"Renters may view this policy as a way to reduce housing prices a bit. Many of these tenants would seek to buy, and they would ask the government to take action to improve housing affordability, "he said.
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