Wednesday, July 21, 2010

The election, mining & property... who's set to win?

Last Saturday’s announcement by Prime Minister Gillard has certainly triggered an election frenzy across the country. The pollies are out campaigning hard, the press cartoonists are having a field day and the usual preference deals are being struck amongst the parties.

But when these political groups have such differing opinions, who will really end up the big winners, or losers, once the votes are drawn?

Here in South Australia mining, defence, the development of the new RAH plus the Northern Expressway are set to inject funds into our economy and boost our population over the coming years. As we all know, more people means a higher demand for housing, a positive impact on real estate and good news for property owners.

So where does the election play a part in this?

Mining, a key part of our State’s growing economy, has unequivocally been in the media spotlight over the past few months. It all started with the release of the Henry Tax Review and in particular the Resources Super Profits tax. Then shortly after the swearing in of our new Prime Minister, Julia Gillard, came the softening of this tax regime to focus solely on iron ore and coal, impacting just 320 companies rather than the original 2,500 and excluding any Uranium mines such as Olympic Dam.

This is where the potential politics comes in. Although the super tax has now been addressed, could the $21billion expansion of this prominent mine still be in jeopardy?

On a state and national level the Labor Government has continually backed Uranium Mining. In the opposite corner we have The Greens, who state in their policies that they will “end the exploration for, and the mining and export of, uranium”. With the two parties making headlines during the past week for ‘striking a deal’ on preference votes, it makes you wonder what exactly has been compromised to reach this deal. Perhaps nothing, as Greens have traditionally backed the Labor Party in the polls, but with such opposing opinions… I guess we’ll have to wait and see what unfolds.

The election aside, South Australia continues to perform well in the property stakes. The rental market is remaining tight, investors are returning to the action and the top end is performing well – we got a property away at auction just a couple of weeks ago for over $3million with 4 registered bidders! It just goes to show that buyers are looking for quality homes and all importantly, at a price in line with their expectations.

Mandy Wurth, General Manager
© Toop Real Estate Group

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