Market Shift Creates Opportunity

Australia’s property sector is preparing for a major adjustment following the passage of tax reforms affecting negative gearing, capital gains tax and SMSF lending.

Industry groups have warned the changes could weigh on housing supply and investment confidence at a time when more homes are urgently needed.

The Property Council said the reforms may affect investment across housing, commercial and industrial projects, while the Housing Industry Association argued the changes could make it harder to deliver new homes.

However, PRD chief economist Diaswati Mardiasmo said the changing environment may also create opportunities for buyers.

With some investors reassessing their strategies, competition may ease in parts of the established housing market, giving first-home buyers and owner-occupiers more room to act.

For investors, strong rental yields, low vacancy rates and local fundamentals will remain key considerations.