Property developers and agents say investor interest in brand-new apartments has strengthened following the Albanese government’s proposed changes to negative gearing and capital gains tax, with several high-profile industry figures reporting a lift in enquiries and sales activity.
The renewed confidence comes after Federal Labor confirmed it would remove negative gearing on existing homes and abolish the 50 per cent capital gains tax discount from July 1, 2027, while retaining incentives for newly built housing.
According to reporting first published by The Australian, Meriton founder Harry Triguboff said the policy changes had triggered “a massive boost in sentiment from many buyers who were sitting on the fence”.
Mr Triguboff, who continues to lead Meriton Apartments at 93, said the first weekend following the federal budget had produced stronger buyer activity across several developments, including projects on the Gold Coast and in Sydney’s north-west.
Meriton claimed investor visits to its display centres rose by about 20 per cent over the weekend, alongside stronger apartment sales activity.
“Investment in new apartments continues to offer existing and enhanced tax benefits,” Mr Triguboff told The Australian, pointing to the continued availability of negative gearing and capital gains tax concessions for new developments.
He said investors would have flexibility under the proposed tax arrangements, particularly with the option to choose between the existing capital gains tax discount and a proposed inflation-adjusted indexation method.
“In a high-inflationary climate, the new proposed method may be more beneficial,” he said.
The comments come as parts of the property sector warn the policy changes could weaken demand for existing investment properties while redirecting capital toward new apartment stock.
Ben Stewart, director of SRM Residential, said investor enquiries had increased for one and two-bedroom apartments, particularly in inner-city Sydney developments.
Speaking to The Australian, Mr Stewart said he recently sold a one-bedroom apartment in Sam Arnaout’s Queensgate project in Potts Point for $2.5 million.
“There’s definitely been an increase in activity,” he said, referring to several apartment projects including The Walden by Aland in North Sydney.
Other developers quoted in the report included Aland chief executive Andrew Hrsto and Nicholas Couloumbis of Toohey Miller & Co, who also pointed to stronger investor engagement following the budget announcement.
Mr Triguboff argued recent sharemarket volatility had contributed to the renewed property interest, claiming some investors were reallocating capital from equities into real estate.
He referenced the recent decline in the S&P/ASX 200, which fell to a seven-week low earlier this month, as evidence that some buyers were seeking more stable assets.
“Buyers are pivoting from the share market back into property,” he said.
The Meriton founder also said fewer buyers were relying on finance from Meriton Property Finance, which he interpreted as a sign of improving market confidence and stronger access to external lending.
The proposed tax changes have divided the property sector, with some industry groups warning they may reduce investor participation in established housing markets and place additional pressure on rental supply.
Supporters of the reforms argue the measures are designed to shift investment toward new housing construction and improve affordability for owner-occupiers.
Mr Triguboff also said first-home buyers were increasingly receiving assistance from family members to enter the market, amid changing tax settings for other asset classes such as shares.
This article references reporting originally published by The Australian.
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