Business News
Contentious tax changes will have a larger drag on home prices than the government forecast in the budget, according to analysis from Australia’s largest lender.
Winding back negative gearing and the capital gains discount for established properties will weigh on home prices by five per cent, compared to Treasury forecasts of a two per cent drag, Commonwealth Bank senior economists Trent Saunders and Ashwin Clarke found.
A slowdown in the property market was already underway before the budget due to global uncertainty and rising interest rates.