Australian investors regain housing market share after budget tax changes

The May 12 Australian federal budget introduced reforms to negative gearing and capital gains tax concessions aimed at reducing investor demand for established homes. In the four weeks to June 27, investors accounted for just 20.7% of auction purchases, the lowest share recorded this year. Recent data from Ray White shows the investor share rose to 23.2% in the four weeks to July 18, with the number of investor buyers increasing to 166 from 149, though still below the 181 purchases recorded in the immediate post‑budget period.

Ray White chief economist Nerida Conisbee said the early drop “suggested the budget may have influenced buyer behaviour, at least temporarily,” but cautioned that “the recovery should not be overstated.” She added that the rebound reflects weakening owner‑occupier activity rather than a strong resurgence in investor demand. Meanwhile, Housing Industry Association chief economist Tim Reardon noted a 4.6% decline in new‑home sales in June following a larger fall in May, attributing the slowdown to higher borrowing costs and broader economic uncertainty.