How the federal budget could push brand-new home prices up in Melbourne

Full transcript

Melbourne's been in a pretty flat market for the last 18 months. I predict the budget we'll start forcing prices up.

we're boots on the ground down here today in Melbourne. There's a lot of buzz around after this brand new budget with the fact that for investors, it's going to be highly prioritised that they're getting brand new homes because with brand new homes, they're able to get the CGT discount as well as they're able to use negative gearing within a portfolio.

What this means for our first home buyer market is this is going to basically take up supply and as supply gets taken off the market with more demand, it's going to force prices up. Melbourne's been in a pretty flat market for the last 18 months. This, I predict, will start forcing prices up.

In the market where pricing starts rising, what we see all the time is this creates a FOMO effect where people start realising that what they could buy something once for is now disappearing. So it brings more people out and into the buying pool and as that happens, we have a surge in demand with an already constrained supply market and that will force the prices up.

So it's very, very interesting to see what the next 18 months will hold for this market. But mark my words, this is going to result in prices increasing in the brand new property market.