“The Budget’s housing centrepiece is a $112 million trial program to assist the elderly to downsize their homes without affecting pensions, via a means test exemption of up to $200,000 for ten years. It is designed to remove the disincentive for seniors to relocate to more age-appropriate housing, but will also open up more suburbs for gentrification and redevelopment,” he says.
Morgan adds that, a year or so ago, he would have said anything that told Australians they were going to get ‘a few less hand-outs’ would have dampened the market.
“There’re other positive signs coming through though,” he says, “including the easing pressures on the Australian dollar. So I think, particularly if we get another rate cut, which seems to be fairly likely, I think the forces will balance each other. In fact, if anything, I suspect there’s going to be a steady uplift in demand this year from investors…All in all, it’s still pretty positive going forward.”