Market Wrap – heading to the polls

Victorians are heading to the polling booths this month – and the outcome could significantly alter Melbourne’s property market.If Labor wins office, the recent overhaul of Melbourne’s residential zones may be reversed. This year the Napthine Government approved new planning zones for 22 of Melbourne’s 31 councils, dividing suburbs into areas where buildings up to two, three or four levels can occur.In some leafy councils like Glen Eira, building above two storeys has been heavily restricted, whereas development up to four storeys is permitted in areas like Darebin. In contrast, Labor is proposing to revive its Melbourne 2030 vision, which would reduce development in outer suburbs and instead create higher-density urban ‘hubs’ close to transportation.These changes could mean your street remains tree-lined or becomes crowded by multi-storey apartments in years to come, which may affect property prices. For example, a free standing home in an increasingly built-up area is likely to increase in value due to its rarity.While house hunters can choose their vote, there’s no knowing for sure what policies will eventuate in future, or to what extent.Rather than letting politics sway your decision, stick to the basic rules of real estate. Homes close to schools, amenities, transportation and attractions like the city or beach tend to hold their value, regardless of development in the area – helping to make your purchase election proof.