With 15 years of experience in the property space, Tina, Licensee in Charge at Ray White Annandale, acknowledged the uncertainty surrounding the new Trump administration (or Trump 2.0 as he’s been dubbed), but stresses the pivotal role of confidence in driving market activity.
“Confidence is a really huge factor when it comes to residential real estate. If something’s printed in the media, people will just stop coming to open homes and put their foot on the brakes,” she explained.
Since the beginning of 2025, Tina has observed renewed confidence in the market, with open homes drawing queues and an uptick in apartment listings in her area – and she’s hoping Trump’s re-election will be a positive drawcard for the industry.
“Whatever happens in America usually trickles down to Australia a little bit later,” she noted. While her buyers haven’t directly cited US politics as a deciding factor, she believes Trump’s policies could indirectly influence Australian market sentiment, particularly if his administration’s actions spark significant economic changes globally.
Insights from the Economic Society of Australia’s (ESA) National Economic Panel provide a broader understanding of the potential ripple effects.
A survey of 39 leading economists suggests that Trump’s program could harm Australian economic growth while fuelling inflation and interest rates in the US.
The panel anticipates higher US inflation resulting from policies such as increased tariffs, mass deportations leading to labour shortages, and corporate tax cuts boosting growth and prices.
These policies could result in slower progress toward global net-zero emissions and weaker economic growth in both China and Australia.
Panel member, Australian National University economist Jenny Gordon explained, “Combine [Trump’s policies] with tax cuts, and you will have a lot of money chasing labour in an already tight labour market. Higher inflation is inevitable.”
University of Queensland economist Alicia Rambaldi also raised concerns about Trump’s potential handling of inflation, noting that any missteps could lead to economic volatility and economist Saul Eslake highlighted risks to US Federal Reserve independence, suggesting that short-term interest rates could be manipulated, creating long-term instability.
The panel’s findings also suggest Australian markets could face pressure from these global developments. Higher US tariffs on imports from China, for example, might depress China’s economic growth and reduce demand for Australian resources.
However, some opportunities could arise, such as Australia taking a leadership role in clean energy production and benefiting from a redirection of Chinese foreign students to Australian universities due to strained US-China relations.
Importance of staying calm
Despite the panel’s findings, Tina echoed the importance of stability and confidence in sustaining the local real estate market.
“Confidence can shift overnight, and that uncertainty can have immediate effects on buyer behaviour,” she said.
“We’re not going to know how this is going to affect us until at least the first couple of weeks of February, but all the indicators are there that there’s renewed confidence in the market,” she said.
Looking ahead, she anticipates that any economic shifts from the US administration could take time to filter through, potentially impacting Australian markets more significantly in the latter half of 2025.
Economists agree that the full effects of Trump’s policies are yet to unfold, so there’s no need to create undue stress.
In the face of such uncertainty, as real estate professional, Tina said she can only remain flexible and vigilant.
“Residential real estate is all about confidence. If we keep that strong, the market will follow.”
