Melbourne auction clearance rate sinks to 50.2% in five-year low after Australia budget housing tax changes
AI Market Summary
Australia's budget changes—removing negative gearing for newly purchased existing homes from July 2025 and indexing CGT concessions to inflation from July 2027—have coincided with Melbourne's auction clearance rate falling to a five-year low. The policy shock is accelerating investor selling and vendor withdrawals, weakening housing-market confidence and increasing uncertainty for renters. Near-term, this reinforces a more cautious domestic demand backdrop and can weigh on Australia-linked risk sentiment.
Impact level
● Medium
Affected assets
NCFXAUD2USD/USDT-0.10%
AI Insight · NCFXAUD2USD/USDTAI Insight
▼ Bearish
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Australia’s federal budget on May 12 set out plans to scrap negative gearing for existing residential properties bought after budget night from July 1, 2025, and to link the capital gains tax discount to inflation rather than holding period from July 2027. Melbourne’s auction clearance rate fell to 50.2% last weekend, its lowest level in five years and notably below the level seen during the COVID lockdown period. Property specialists said investors were accelerating their exit, prompting more withdrawn listings and adding pressure on renters. They said the shift has rattled confidence across the market.
