Coalition super housing policy likely to inflate prices by increasing demand, analysts say

Coalition’s two-pronged super housing policy will lead to higher house prices, economists say. Photograph: Diego Fedele/AAP

The Coalition’s twin-pronged housing policy is likely to push up property prices to the benefit of existing homeowners, with only modest effects on increasing supply, market analysts say.

Scott Morrison announced the plan on Sunday at the Coalition’s formal campaign launch, with first homebuyers to be allowed to access as much as $50,000 of their superannuation to help muster a mortgage deposit. To boost supply, the policy would also encourage more “empty-nesters” aged over 55 to downsize.