New home sales fall 17.5% following Albanese government policy
New home sales dropped 17.5% in the September quarter. This came after housing tax changes announced five months ago.
New home sales have collapsed 17.5% in the past three months. The collapse creates pressure on the Albanese government's housing policy.
The downturn follows tax changes the government announced five months ago to address what it calls 'tax distortions' in the property market. Assistant Treasurer Daniel Mulino says critics are exaggerating the problem.
He also says the government is building more homes to address supply. Economists and industry figures blame post-budget uncertainty, high interest rates, and rising inflation for the market's weakness.
Some argue the government's increased spending is fueling inflation. Others warn that any government wanting to control inflation must now cut spending significantly.
The next inflation reading and interest rate decision will come within weeks.
Why it mattersFalling home sales and rising mortgage costs are hitting Australian households. The government's policy is now under scrutiny as the market weakens.
AustraliaAustralians buying homes face higher mortgage payments as rates remain elevated; the property market slowdown threatens construction jobs and economic growth.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
Open this story in InSnip →
