The property styling sector, along with real estate photographers and freelance auctioneers, has experienced a significant downturn linked to a decline in home sales activity since the release of the federal budget in May. The budget, which introduced higher property taxes and removed certain concessions, has contributed to a sharp reduction in the number of capital city homes taken to auction during the peak spring selling season, with volumes dropping more than 31 percent compared to the previous year.

Data from Cotality indicate the preliminary combined auction clearance rate across major capitals in September was just over 52 percent, considerably lower than in past years. Meanwhile, New South Wales reported a 20 percent decrease in stamp duty revenue for July, raising concerns about potential shortfalls in the state government’s budget.

David Highland, founder and CEO of Highland Property, which operates seven real estate offices spanning Sydney and the Gold Coast, said the federal government’s proposed increase in capital gains tax has had an immediate impact on a range of property-related service providers. “This is not limited to interior designers; it’s also people who supply furniture packages, real estate photographers, and graphic designers. Anyone involved in residential property listings or sales is affected,” he said. Highland’s firm employs about 220 staff.

According to Highland, current market conditions have made consumers more cautious with their spending, leaving little flexibility in marketing budgets. “Marketing is an essential cost rather than a revenue stream. Everyone must manage expenses carefully. We’re renegotiating hard costs like signboards and brochures, as all aspects of the property sales process are feeling the pressure,” he said.

At Spatial Property, head of marketing Laura Ugarte reported that while inquiries have remained steady, the actual number of styling jobs booked has declined compared with last year. Ugarte attributed this trend to increased cost-consciousness among sellers, with many opting to sell homes off market. Spatial Property provides house styling packages lasting up to 12 weeks, with prices beginning at around $3,500 for one-bedroom apartments and exceeding $10,000 for three-bedroom homes. These packages include a pre-styling consultation, delivery and installation of furnishings and accessories, and collection after sale.

Similarly, Matt Gowen, director of Urban Chic Property Styling, noted a modest shift in demand following the budget. “Inquiries may be holding reasonably strong, but it’s difficult to determine if this is due to seasonal factors or budget-related pressures,” he said. Styling a property typically costs between $4,000 and $10,000 for an eight-week marketing campaign. Gowen added that sellers are now tending to request longer styling periods, increasing from the previous six weeks to eight or even 10 weeks in some cases.

Overall, the tightening housing market and increased tax burdens appear to be reshaping expenditure patterns across the property services industry, with many providers adjusting to a reduced volume of business as sellers become more budget conscious.