New-build investors set to gain under CGT changes
As negative gearing and capital gains tax reforms take effect from mid-2027, property investors face a strategic shift toward new-build housing, while developers could see renewed project feasibility and stronger apartment demand.
Owner-occupier lending has slowed more significantly than for investors, according to data released Thursday (21 May). (Image source: Leszek Glasner/Shutterstock.com)
By mid-2027, Australian property investors will face a pivotal decision: maintain their current portfolios under evolving tax settings or reallocate capital toward new-build properties to preserve access to the 50 per cent capital gains tax discount.
This choice, created by the 2026/27 Federal Budget
’s differentiated treatment of existing versus new-build dwellings, could fundamentally alter demand patterns across the residential market.
