VIC Real Estate Market ‘Benefits from Budget’

The latest Victorian budget will have a positive impact on the state's housing market, according to an industry organisation, which could spell good news for people hoping to sell property in Rowville.

The Real Estate Institute of Victoria (REIV) applauded the 2013-14 budget, released on Tuesday (May 7), claiming that the ideas set out in the document will be beneficial for the Victorian economy.

Chief executive officer of the REIV Enzo Raimondo said the budget promises the most vital factor in a healthy real estate market – sustained economy growth.

"The overall budget settings are sound, history has shown that when the economy stalls property prices and transactions drop with consequences for homeowners and ultimately the state budget," he stated.

"Increased employment and a higher Gross State Product (from 1.5 per cent to 2.75 per cent) will result in households being more confident and this will provide a boost to transaction levels and prices."

His comments followed the state government's announcement earlier this month that a new First Home Owner Grant would be available from July 1 2013, making $10,000 available for people should they purchase a newly constructed property.

However, Mr Raimondo said the initiative would actually harm the first home buyer demographic, as a previous $7,000 grant had been available for existing dwellings – which the REIV claims are preferred by those purchasing their first property.