	{"id":188277,"date":"2026-06-05T04:00:00","date_gmt":"2026-06-04T18:00:00","guid":{"rendered":"https:\/\/timesnewsgroup.com.au\/surfcoasttimes\/?p=188277"},"modified":"2026-06-04T09:34:32","modified_gmt":"2026-06-03T23:34:32","slug":"post-budget-blues-hit-property-market","status":"publish","type":"post","link":"https:\/\/timesnewsgroup.com.au\/surfcoasttimes\/real-estate\/post-budget-blues-hit-property-market\/","title":{"rendered":"Post budget blues hit property market"},"content":{"rendered":"<p>THE reaction to the federal budget across our local property sector has been instant and stark. <strong>I have spent a few days ringing around agents in all areas of Geelong to get a handle on what\u2019s happening on the ground and here is a chilling snapshot.<\/strong><\/p>\n<p>Across our affordable-value markets (under $900k), pre-budget they were dominated by buyers agents dealing directly with real estate agents.<\/p>\n<p>In terms of purchasing power, they have been prolific in some areas, buying 80 per cent of the market, mostly representing interstate investors.<\/p>\n<p>These buyer agents are typically looking for sub-$900k properties with rental returns of 5 per cent or greater.<\/p>\n<p>Post-budget, these buyer agents are far less prolific \u2013 gone for now, but not forever!<\/p>\n<p>In speaking with several buyer agents, the theme is that investors are reassessing their back room and structures and will come again, once things become more certain and legislation is either passed or amended.<\/p>\n<p>In one case, an agent with multiple properties across Bell Park and Hamlyn Heights had 110 inspections and enquiries the weekend before the budget.<\/p>\n<p>In the weekend after those numbers dropped to less than 10 enquiries. Huge declines!<\/p>\n<p>In the mid-tier ($1m-$2m) sales have been slow for an extended period, well before the budget and demand comes from owner occupiers rather than investors so there is less impact.<\/p>\n<p>The main point coming through is that sellers\u2019 expectations must be realistic to achieve sale outcomes, but the budget impact is the lack of confidence from buyers and uncertainty from vendors.<\/p>\n<p>Much of the stock for this market comes from downsizers, with selling agents and advocates both advising that stamp duty costs remain a significant hurdle to many. It\u2019s a wonder why this was not tackled in the budget.<\/p>\n<p>The high-tier ($2m +) markets are also very slow.<\/p>\n<p>There is minimal interest, and the interest that is out there has a lot to choose from with owner occupiers again dominating this market.<\/p>\n<p>Confidence around income security is also becoming a factor in purchasers\u2019 decisions at this level, with many not eager to stretch their budgets as they once were.<\/p>\n<p>A large portion of buyers are small business owners or sole operators, and much of their low confidence is coming from the other parts of the budget, such as the taxes on trusts and distributions.<\/p>\n<p>Uncertainty is the order of the day!<\/p>\n<figure id=\"attachment_30038\" aria-describedby=\"caption-attachment-30038\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-30038\" src=\"https:\/\/static.timesnewsgroup.com.au\/prod\/uploads\/sites\/3\/2026\/06\/image2_52610.jpg\" alt=\"\" width=\"600\" height=\"399\" \/><figcaption id=\"caption-attachment-30038\" class=\"wp-caption-text\">141 Noble Street, Newtown sold under the hammer for $3.3 million last week, after last changing hands for $4.75 million in 2022. The result has been cited as an example of softer conditions at the top end of the Geelong property market.<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>As an example, a landmark property \u2013 141 Noble St, Newtown \u2013 was auctioned and sold for $3.30m last week. This property was purchased in March 2022 for $4.75m. It is a drop in value of 30 per cent!<\/p>\n<p>Meanwhile in commercial property, the bull market in industrial land we have experienced is coming off.<\/p>\n<p>This is cyclical and not a result of the budget, with buyers mostly owner-occupiers or developers.<\/p>\n<p>In established retail and office areas, agents are reporting that investors have, like residential investors, gone quiet post-budget.<\/p>\n<p>However, the auction of the drive-thru bottle shop in Mercer St on Thursday (post-budget) achieved a sale of $1.615m, representing a return of 4.9 per cent.<\/p>\n<p>It was purchased by investors with two bidders, and sold after the auction, suggesting that in the commercial spaces, there is a flight to quality.<\/p>\n<p>Bottle shops have always been a strong market for investors and remain so.<\/p>\n<p>What will be interesting is to see how the sale of 128-134 Pakington Street goes in mid-June. This retail property has two strong tenants and is in the Geelong West Village, a traditionally tightly held area.<\/p>\n<p>Readers should stay tuned for that one.<\/p>\n<p>Now for some good news: land sales in the estates from Lara to Armstrong Creek have picked up, and its obvious this is a reaction from the budget, with both investors and first home buyers already looking to make the most of the negative gearing carve-out for new builds.<\/p>\n<p>This is great news, and perhaps these budget measures will start to have an impact on supply. Volume builders should be the big winners from this outcome.<\/p>\n<p>Like all major market \u201cshocks\u201d, it is a moment in time and must be considered in context.<\/p>\n<p>Over the last 12 months, Perth has averaged 21 per cent growth, Adelaide 14 per cent, Brisbane 15 per cent, Newcastle 9 per cent, Sydney 6 per cent, Geelong 3 per cent and Melbourne -2 per cent.<\/p>\n<p>Geelong has the highest population growth expectation in the country, with our population predicted to rise 24 per cent by 2030.<\/p>\n<p>Demand will continue, and investors will find ways of taking advantage of those metrics.<\/p>\n<p>It may be slow now, but it will come back around.<\/p>\n<p>In the meantime, enjoy a nice slow winter watching the Cats challenge for a flag!<\/p>\n<p><strong>GARETH KENT<\/strong><\/p>\n<p><em>Director, Preston Rowe Paterson<\/em><\/p>\n<p style=\"text-align: right;\"><strong>\/\/SPONSORED CONTENT<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>THE reaction to the federal budget across our local property sector has been instant and stark. I have spent a few days ringing around agents in all areas of Geelong to get a handle on what\u2019s happening on the ground and here is a chilling snapshot. Across our affordable-value markets (under $900k), pre-budget they were [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/timesnewsgroup.com.au\/surfcoasttimes\/real-estate\/post-budget-blues-hit-property-market\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":156,"featured_media":188596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[29],"tags":[],"post_folder":[],"class_list":["post-188277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Post budget blues hit property market - Surf Coast Times<\/title>\n<meta name=\"description\" content=\"Post budget property market sees slow sales and investor caution in Geelong, with land and new builds showing early activity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/timesnewsgroup.com.au\/surfcoasttimes\/real-estate\/post-budget-blues-hit-property-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Post budget blues hit property market - 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