What happened
Residential property investment fell 9% in the June quarter of 2026, according to the realestate.com.au Terri Scheer Investor Report. Senior Economist Angus Moore attributed the decline to RBA rate hikes and May federal budget proposals removing negative gearing for existing residential properties and altering capital gains tax discounts. Despite tighter lending, 93% of selling investors realised profits.
Why it matters here
The withdrawal of tax concessions on existing residential property is shifting investor focus toward higher-yielding assets and new developments. Reduced investor demand could ease competition for home buyers, but persistent rental market tightness means rental yields are likely to support overall activity, altering residential capital allocation models across Australian property markets.
What to watch
Evolving federal budget legislation updates and quarterly investor loan commitment figures published by the Australian Bureau of Statistics over the coming year.
Source
news.com.au