House Prices Expected to Decline
Australian house prices in Sydney and Melbourne are likely to fall by up to $100,000 over the next 12 months. This prediction follows reports published on June 22, 2026.
Economists believe property prices will decline by up to 8 per cent across these two largest cities in the coming year. A slowdown is also expected in other capital cities, with potential spillover effects into the rest of the economy.
Recent Market Data
The nation's auction clearance rate dropped to a six-year low last week as of late June 2026. Economists noted that this metric tracks alongside price declines in Sydney and Melbourne.
Federal Tax Reforms Introduced
The federal government introduced tax reforms into the Senate on Monday, June 22, 2026. The proposed changes include restricting negative gearing to new builds from the middle of next year. Additionally, a return to the pre-1999 capital gains tax concession is part of the package.
Impact of Policy and Interest Rates
The combination of these proposed tax reforms and interest rate settings is expected to slow the property market. The federal government's overhaul of negative gearing and capital gains tax, alongside current interest rate settings, are cited as factors in slowing the sector.
Partisan Responses
Opposition Leader Angus Taylor accused Prime Minister Anthony Albanese of an "Olympic-level backflip" over additional concessions during question time. This comment followed Labor's expansion of capital gains tax carve-outs for small and innovative businesses last week.
Greens Party Position
The Greens were reported as being expected to support the proposals when they were introduced into the Senate on Monday, June 22, 2026. The party is also expected to support the tax legislation generally.
Other Legislative Negotiations
The Greens are still negotiating with the government regarding a delay of passage for its National Disability Insurance legislation. This matter remains distinct from the property tax reforms discussed in reports on June 22, 2026.