Australia: Election, regulatory changes and interest rate cut boosts sentiment

The Australian Residential Review by Michelle Ciesielski reports that since the Coalition retained power on 18 May a positive sentiment has rippled through the housing market. The Coalition’s victory eliminated the likelihood of changes to negative gearing and capital gains tax. In 2018, certain lending caps were removed and further changes are proposed signalling a change to the lending environment. The market was given a further boost by the Reserve Bank of Australia when it cut the base rate from 1.50 to 1.25 bps on 4 June 2019.