Liverpool, Wiley Park, North Parramatta and Fairfield are among the suburbs expected to suffer significant additional falls in value under the federal Labor Party’s policies of ending negative gearing and changing capital gains tax, according to the Real Estate Institute of NSW.

REINSW has released an analysis of the 50 property markets across Sydney that are most vulnerable to the ALP’s policies of reducing the number of investors in the market, showing 41 out of the 50 property markets are in Labor-held electorates.

REINSW CEO Tim McKibbin said the data identifies suburbs that have a high proportion of rental properties and which have already suffered double-digit falls in property values.

At a glance

• New data from the Real Estate Institute of NSW has revealed the suburbs most likely to be affected by Labor's changes to negative gearing.
• Liverpool, Wiley Park and Eastlakes were identified as the most vulnerable.
• 41 of the 50 property markets included in the data are in Labor-held electorates.

“On this basis, new policies that cause investors to exit will reduce the number of buyers in the market further," he said.

"This, in turn, will escalate the losses in value even further.

“When we compared the data against federal electorates, we discovered that the overwhelming majority of seats are held by the ALP.”

Related Reading: Real estate sector gears up for May 18

Liverpool was identified as most vulnerable to proposed changes, with median house values have 25.3% over the past 12 months, according to CoreLogic.

Situated in the Labor seat of Fowler, which is held by Chris Hay, 52.2 % of property is rented in the suburb and median house price is $643,526.

Wiley Park is second on the list in the Labor seat of Watson, currently held by Tony Burke.

The proportion of properties rented in Wiley Park is currently 50.3% and house values have dropped -21% over the past 12 months to a median value of $700,998.

Eastlakes in the federal seat of Kingsford Smith, held by Matt Thistlethwaite, rounds out the top three. The median value of a house in Eastlakes has fallen -20.4% over the past 12 months and is currently $1.228 million. The data shows 52% of Eastlakes residents are renting.

Other ALP seats affected include Sydney, held by Tanya Plibersek, Grayndler held by Anthony Albanese, Parramatta held by Julie Owens, Chiefly held by Ed Husic and Werriwa held by Anne Stanley.

Of the 50 suburbs, 44 had value losses greater than 10% and 11 had property value losses greater than 15%.

Mr McKibbin said these suburbs had already "suffered significantly" under the property downturn.

"Any policy that reduces buyer activity further going to undermine prices further,” he said.

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Source: REINSW

The data reveals the suburb of Airds in the federal seat of Macarthur has the highest number of properties under rental with 92.7% tenanted.

Bidwell in the seat of Chifley has the next highest number of rental properties with 76.9% of the property stock tenanted. This is followed by Warwick Farm where 67.7% of properties are rented.

The members with the most property markets in the list are Tanya Plibersek, Member for Sydney, and Ed Husic, Member for Chifley, with seven each.

Real Estate Institute property taxation campaign a 'resounding success'

The public awareness campaign against property taxation has succeeded in its objective, according to the Real Estate Institute of Australia.

Having been launched in conjunction with the announcement of the election date, the REIA has posted material across its social media platforms daily as part of the initiative, which outlines the potential consequences of Labor's proposed changes to negative gearing and capital gains tax.

 REIA President Adrian Kelly said Labor's negative gearing reform had been one of the most publicly debated issues of the campaign.

“Rarely an interview with a politician or a current affairs program passes without the matter being discussed. It is well and truly an election issue.

“The aim of the campaign was to ensure that all political parties, candidates and, importantly voters know the consequences of the Opposition’s policy on negative gearing and capital gains tax

“These include adverse economic impacts,  impacts on mum and dad investors retirement nest eggs, home owners, renters, the construction industry, state and federal governments.:

“Aided by a network of real estate groups the campaign content has already reached nearly 8 million Australians."

Mr Kelly said the commentary and debate beneath REIA’s daily posts confirmed the importance of a healthy property sector in the lives and aspirations of ordinary Australians.

“Whilst we still have a week and a half to run of the campaign, I am quite sure that public awareness has improved significantly and I am encouraged by the likelihood that Senate crossbenchers will reject any legislation around the proposed changes should a Labor government be elected,” he said.  

You can join the campaign at Facebook, Twitter and Instagram.

By Sean Slatter

Read more: 

Ray White and REIA welcome SQM report on Labor's negative gearing policy 

PCA and REIA speak out after Labor announces start date for proposed negative gearing changes

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