Do elections impact buyer behaviour?

A federal election often sparks debate about its impact on the property market, with many believing it instantly reshapes buyer behaviour.

According to Domain’s latest report, Mythbusting: The Impact of a Federal Election on the Property Market, released on Thursday, political uncertainty can dampen the housing market, but elections don’t directly slow property transactions.

Canberra can be sensitive to election outcomes due to a high concentration of public servants, as government employment, policy changes and budget decisions can influence market confidence.

Following strong results in February, last weekend’s auction market revealed a change in mood, with clearance rates falling to 45 per cent, down from 56 per cent at the same time last year.

Jonny Warren of Jonny Warren Properties noted that while confidence was building in early 2025, election uncertainty has slowed the market recently.

“Canberra generally hibernates during an election as job uncertainty becomes a factor, but it’s a short-term impact,” he said.

Warren said that with interest rates falling and the economy remaining steady, results were still strong, though the market was starting to dilute slightly.

“Coming into winter – traditionally, a quieter period – we may see some oversupply, but the market should bounce back quickly,” he said.

Domain’s analysis supports this. The report showed that while some sellers avoid scheduling auctions on election day, results don’t indicate a significant downturn in performance.

The idea that a particular party’s victory guarantees a stronger market or better home-ownership outcomes has also been shown to be unfounded, with broader economic conditions playing a far greater role.

The report found that transaction volumes may fluctuate slightly overall, but historical data shows no significant long-term impact.