Prominent members of the NSW and Queensland building sectors have given their final thoughts on Saturday's election in the wake of an eventful week for the housing industry. 

The announcement of a First Home Loan Buyers Scheme on Sunday was followed by the release of data from the Australian Bureau of Statistics on Thursday showing the unemployment rate had risen slightly to a seasonally-adjusted 5.2 per cent in April.

With the RBA having previously stated it is waiting for a further deterioration of the labour market before it cuts rates, the figures have led to speculation there could be an adjustment of the national cash rate at the next monthly meeting.

For Luke Fryer, NSW General Manager of construction company Metricon, the recent developments highlighted the importance of restoring consumer confidence following the election.

"Throughout the past 12 months, the new home industry has been impacted fairly significantly by the Royal Commission into lending, and housing prices dropping by up to 12.4 per cent annually in the major markets," he said.

"The election really has been the third fundamental distraction the market has had and the last major change consumers have been waiting for.

"Hopefully, we will see some level of normality return to the market once the dust has settled."

"The market needs certainty, and Saturday will provide that one way or the other." 

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Metricon NSW General Manager Luke Fryer

No matter who wins, first home buyers will have a slightly easier path to entering the market, with the First Home Loan Buyers scheme receiving support from Labor in the hours after it was announced by the Coalition. 

The announcement of the policy comes after figures from the Housing Industry Association show that the number of loans for purchase or construction of new dwellings for owner-occupiers fell by 4.8 nationally in the March quarter to be down 11 per cent in the 12 months to March 2019.

Master Builders Queensland Deputy CEO Paul Bidwell said while the First Home Loan Buyers scheme may "partially offset" the trend, each state had its own challenges.

“We’ve seen a scheme like this work before, with the $5,000 boost to the First Home Owners’ Grant generating an extra 2,990 new dwellings each year in Queensland for the two years it was in place from 2016 to 2018," he said. 

"However if Labor wins on Saturday, we believe our industry will be hit hard in the medium term by the impact of changes to negative gearing and capital gains tax.

"Now is not the time for any level of government to be introducing changes that will increase the cost of doing business. 

“In a time of uncertainty and great change for our industry, we need both sides of government, at both a state and federal level, to help us get on with the job of building the new homes that Queenslanders need."  

By Sean Slatter

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