Election 2025: Why Property Investors Can Expect Stability Regardless of the Outcome

As Australia approaches the 2025 federal election, property investors are keenly observing how potential political shifts might influence the real estate market. However, the overall message is clear: from a political perspective, not much is expected to change. Both major parties have aligned on key housing policies, meaning investors are unlikely to see major disruptions. What will have a greater impact in 2025 is the expected easing of interest rates, which is already improving market sentiment. At Sound Property, we are encouraging buyers to take action this year, as falling rates and sustained demand create strong investment opportunities.

Sound Property’s Insights & Opinion

At Sound Property, we believe the 2025 election is unlikely to cause major disruptions in the property market. The days of bold policy shifts—like Labor’s 2019 attempt to overhaul negative gearing—appear to be behind us. Instead, both parties are focused on the more pressing issue: supply. With record low vacancy rates, rising rents, and growing demand, Australia needs practical, long-term solutions to increase housing stock. Investors should be watching how the next government tackles supply-side issues, as this will have a greater influence on market performance than political rhetoric alone.

Policy Alignment and Lessons from the Past

In the 2019 federal election, Labor proposed significant changes to negative gearing and capital gains tax concessions, aiming to address housing affordability. These proposals were met with resistance from property investors and were considered a factor in Labor’s electoral loss. Since then, Labor has recalibrated its stance, aligning more closely with the Coalition’s policies to avoid alienating property stakeholders. This shift indicates that, irrespective of the election outcome, drastic policy changes affecting property investment are unlikely.

Focus on Housing Supply

A critical issue both parties acknowledge is the pressing need to address housing supply shortages. The ALP has committed to building 1.2 million homes by 2030, aiming to alleviate affordability pressures. This plan includes a $10 billion Housing Australia Future Fund, projected to construct 30,000 new social and affordable homes over five years. Additionally, the government has introduced a shared equity scheme to assist first-time buyers (Reuters).

The Coalition, while not committing to the same numerical target, has proposed a $5 billion housing infrastructure fund designed to unlock the development of 500,000 homes by investing in essential services like water, power, and sewerage at housing development sites (The Australian). This plan underscores the Coalition’s focus on enabling infrastructure to support housing growth.

Implications for Property Investors

Given the bipartisan recognition of housing supply challenges and the commitment to address them, property investors can anticipate a stable policy environment post-election. The absence of contentious proposals, such as the removal of negative gearing benefits, reduces the likelihood of market disruptions. Investors should monitor the implementation of these housing initiatives, as increased supply could influence property values and rental yields over time.

Conclusion

The 2025 federal election is poised to have a subdued impact on the property market, primarily due to the convergence of major parties on housing policies and lessons learned from past electoral outcomes. Both the ALP and the Coalition are prioritizing housing supply solutions, aiming to enhance affordability and meet demand. For property investors, this alignment suggests a period of stability, allowing for informed decision-making without the concern of abrupt policy shifts.

More importantly, with interest rates expected to ease in 2025, market sentiment is improving. This presents an opportune moment for buyers to take action before prices and competition accelerate further. At Sound Property, we’re encouraging investors to be proactive—reach out to our team to discuss your property strategy for the year ahead.