Australian Housing Policies Trigger Projected Price Crash

The Parliament of Australia implemented housing policies to undo negative gearing and the 50% capital gains tax discount. These measures aim to improve housing affordability by reducing the cost of dwellings relative to household income.

Research from the Australia and New Zealand Banking Group Limited forecasts that capital city house prices will fall by an average of 10.6% by the end of 2027. Sydney is expected to experience the steepest decline at 14.5%. Projections indicate the cost of an average dwelling could drop from 17.3 years of annual household disposable income in early 2026 to 14.7 years by the end of 2027, the most significant affordability improvement since 1970.

Opposition Leader Angus Taylor characterized the projections as the worst crash in more than four decades. He accused the Labor government of breaking promises and making millions of homeowners worse off. Conversely, analysts describe the price dip as a necessary correction to stabilize the housing market.