While home values in most Australian federal electorates have risen since the 2022 election, a new report indicated a decline in several key areas.
Median house prices in some seats have fallen by as much as $250,000, according to PropTrack data.
In contrast to the national trend, Melbourne, which led the housing market recovery in February, has seen home prices drop across numerous electorates, reflecting slower economic growth compared to other regions.
Among the 150 electorates to be contested in the upcoming 2025 elections, 25 have witnessed declines in house prices, with 36 seeing falls in unit prices.
The steepest declines have occurred predominantly in higher-priced districts, with 18 out of the 25 electorates experiencing drops boasting median prices above $1 million.
The most notable reductions have been in Melbourne’s affluent suburbs, including a $250,000 decrease in Macnamara, and significant falls in Flinders and Melbourne’s inner-city areas held by Greens leader Adam Bandt, PropTrack reported.
The decline in home prices is largely attributed to market reactions to rising interest rates initiated just before the last election.
“When prices are softer, you often see a more pronounced downturn at the market’s upper end,” said Angus Moore (pictured), a senior economist at REA Group.
The relationship between home prices and voter sentiment may be evolving.
Traditionally, rising home values boost voter morale, but current trends show that decreases in property prices might not necessarily disappoint homeowners.
“People are becoming more receptive to policies that promote housing supply, even if it means potential decreases in their property values,” said Matt Grudnoff, a senior economist at The Australia Institute.
Amidst these market shifts, there’s a growing willingness among voters in affluent electorates to support measures that could facilitate broader market access, despite potential declines in their property values.
“There’s a significant attitude change, with more people supporting increased housing supply to allow new buyers into the market,” Grudnoff said.
Peter Gavalas, a buyer’s agent at Resolve Property Solutions in Perth, previously noted that the months leading up to an election might offer a prime opportunity for ready buyers to make their move into the market.
As the 2025 federal elections approach, the dynamics of home prices and their impact on electoral outcomes will be crucial, particularly in electorates experiencing the most significant valuation shifts.
Read the full article in realestate.com.au.
