The "eyes of real estate" will be on May 18, according to those within the industry.

With just over two weeks to go until the Federal election, the sector has stepped up its messages in relation to the impact of Labor's proposed changes to negative gearing and capital gains tax, but debate remains about what will be affected by the reforms.

In his monthly 'minute market update' video, Ray White New Farm director Haesley Cush reiterated the importance of this month's poll to the residential property market.

"If you bring in a policy that is designed to put pressure on prices that are already being pushed down, the double negative could bring big effects across the market," he said.

"It's really big negative when it comes to house prices throughout the country." 

Labor's plan to reform negative gearing and halve the 50 per cent deduction on capital gains allowed across asset sales is also central to one of the most widespread REIA campaigns in recent memory.

Now in its third week, the extensive publicity operation has reached an audience of more than five million through daily video content drops, as well as coverage on radio, print, and online platforms.

Sweeping changes to negative gearing could hit rental affordability hard. Here’s why https://t.co/5umV2EU7kb #auspol #negativegearing #negativegearingaffectseveryone #reia #cgt pic.twitter.com/SnqrnAvJpM

— REIA (@REIANational) April 30, 2019

REIA President Adrain Kelly told WILLIAMS MEDIA the videos were designed in response to consumer questions about the proposed changes.

"The campaign reached in excess of one million Australians in its first week," he said

"Australians are certainly debating the merits of the country’s long-standing property taxation system.

"This is evidenced by the commentary and debate beneath the REIA’s daily posts." 

Mr Kelly appeared on ABC News Breakfast on April 30 to discuss negative gearing alongside tax expert Professor Miranda Stewart.

One of the key arguments of the REIA is that the removal of negative gearing will result in higher rents, as evidenced by what happened during the Hawke/Keating era.

But Ms Stewart told the ABC that a rent rise coming directly as a result of negative gearing reform was "very unlikely"

"What is more likely to happen is that there will be fewer properties available for investment strategy, which relies on negative gearing for current income and depends on future capital gain," she said.

"What that will mean is first home buyers ware more likely to come in and take those purchases, so we might see some shifting of people from the rental to the home buyer market."

Speaking in response to the claims, Mr Kelly said all of the investors that the REIA deals with "require a certain level of return".

"If they can't have the benefit of negatively gearing tax losses, they will increase rents to get the return they need," he said.

By Sean Slatter

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