Australian Property News

Canberra market slows in uncertainty over Public Service job cuts

Posted on Wednesday, August 25 2010 at 4:42 PM

In a city buoyed by Federal Government jobs, the Canberra property market is on hold with some investors uncertain of job security if the Coalition is appointed to govern, a scenario that is believed to ultimately impact property prices.

“Everyone is adopting a wait-and-see approach,” said Canberra property investor Kym Bergmann.

“Because of the election campaign the property market has ground to a total halt here,” he said.

“One theory is that if Tony Abbott becomes PM (Prime Minister) he will cut back on the Public Service, which in turn will place downward pressure on prices – at least in the short term. So everyone is adopting a wait-and-see approach,” said Bergmann.

However PRDnationwide principal Derek Whitcombe said regardless of which major party is appointed to govern, major job cutbacks shouldn’t be a concern.

“The reality is if you talk to Gary Humphries (Liberal Senator for the Australian Capital Territory) the Liberal Party has no intention of doing anything other than job loss through natural attrition.

“The market has quietened, being where we are we get more people talking about it, it’s more topical because people are in amongst it all the time so they’re more distracted by it,” said Whitcombe of the Federal Election.

“But we work closely with governments at all different levels and regardless of who gets to control parliament the property market won’t change.”

Whitcombe said while sales had slowed recently through the election it’s not unusual during a typical election campaign.

In an effort to help maintain job confidence for Canberra property investors in uncertain times for Federal politics, ACT Treasurer Katy Gallagher made a timely and reassuring announcement this week.

Gallagher revealed the ACT Government’s nearly $850 million capital works commitment for this financial year.