Australia's Property Tax Overhaul Cools Housing Market

Australia's long-standing reliance on property as a primary wealth-building strategy is facing a significant shift due to a recent tax overhaul. The government's decision to end property investment tax breaks, the most substantial change in decades, has led to a dramatic cooling of the housing market. In Sydney, an auctioneer struggled to attract bids for a multi-million dollar home, a stark contrast to the market's previous red-hot conditions. Nationally, weekend auction clearance rates have plummeted to below 50%, reaching their lowest point since the pandemic, according to data from property research firm Cotality. Real estate agents confirm this trend, noting a halving of property viewings and the number of active bidders, with clearance rates now hovering around 30-35%. This policy shift is seen by some as an attempt to curb Australia's property obsession, which has contributed to cities like Sydney and Melbourne becoming among the world's least affordable.