Will the Federal Election Impact the Victorian Property Market This Weekend?

Will the Federal Election Impact the Victorian Property Market This Weekend?

As we head into the 2025 federal election this Saturday, many of our clients—both buyers and sellers—are naturally wondering whether the election will have any impact on the property market here in Victoria.

The short answer is that while we may see a temporary pause in activity, particularly around auctions scheduled on the day itself, elections do not generally have any long-lasting effect on property prices or transaction volumes. However, there are a few key points worth keeping in mind if you’re planning to attend or host an auction this weekend—or if you’re just watching the market closely.

What Happens to Auctions on Election Day?

The biggest and most immediate impact we typically see from a federal election is on auction scheduling and attendance.

The Australian Electoral Commission requires that polling places be open from 8:00am to 6:00pm. As a result, many buyers will be tied up voting during the day, and their availability to attend open for inspections or auctions is limited. This particularly affects the mid-morning to mid-afternoon window, which is typically prime time for property auctions in Victoria.

Because of this, auction volumes almost always drop significantly when an election falls on a Saturday. In some previous elections, the number of auctions scheduled has fallen by up to 60% compared with the weeks immediately before and after.

That said, it's worth noting that clearance rates—meaning the percentage of properties that actually sell at auction—often stay relatively strong or even improve slightly on election day. This is likely because while there may be fewer attendees, those who do show up are usually serious, finance-approved, and ready to buy. We call them the "sticky buyers"—they’re in the market regardless of the headlines.

That’s why I often advise vendors who are absolutely set on going ahead with an auction this weekend to do so either early in the day (before 11:00am) or later in the afternoon (after 4:00pm) to avoid the busiest voting periods.

What About the Broader Market?

Stepping back from the auction calendar, we also need to consider what impact, if any, the federal election might have on the broader property market in Victoria.

In short: not much in the short term, but potentially some influence depending on which party forms government and what policies they bring forward.

This year, both major parties have pitched housing-related policies aimed at addressing affordability and accessibility—though they are taking very different approaches.

The Liberal Party is promoting a policy that would allow first-home buyers and older Australians—particularly older women—to access up to $50,000 from their superannuation to buy a home. While this may help more people get into the market, it risks increasing demand without increasing supply, which could drive up prices even further—particularly in the entry-level bracket.

Labor, on the other hand, has focused on boosting supply, with a commitment to build 100,000 new homes for first-home buyers. If this policy is implemented effectively—and that’s always the key—it could help take some pressure off prices over the medium term, especially in growth corridors and regional areas.

Neither policy is likely to dramatically shift the market overnight. However, depending on who wins and how quickly they move to legislate these proposals, we may start to see subtle shifts in buyer behaviour, particularly in the first-home buyer segment.

Other Factors at Play

It’s also important to remember that the property market doesn’t move in isolation. Interest rates, inflation, and housing supply all play a much larger role in shaping buyer confidence and price growth.

At the moment, we’re still seeing a supply shortage across many parts of Victoria, particularly in established suburbs. Some economists are also predicting an interest rate cut later this year, which could spur further buying activity. These factors are far more likely to drive market direction than the election outcome itself.

So, while the election may cause a temporary pause or rescheduling of some auctions, it’s unlikely to change the trajectory of the market in any meaningful way.

Final Thoughts

In summary, federal elections come and go, but the fundamentals of the Victorian property market remain the same. If you’re ready to buy or sell, don’t let the election distract you. Be mindful of timing if you're planning to hold an auction this weekend, and be prepared for a quieter-than-usual turnout.

If you’re a buyer, you may find that the reduced competition on election day could work in your favour.

If you’re a vendor, you may wish to postpone to the following weekend, where auction numbers and attendance will likely return to normal.

If you have any questions about your specific property matter or would like advice tailored to your circumstances, please don’t hesitate to get in touch.