New home sales plunge 20% as builders warn of market crisis
New home sales have fallen 20% to an all-year low. Builders and the Opposition blame the government's property tax changes.
New home sales have crashed 20% to their lowest level on record, sparking fierce debate. The question is whether the Albanese government's property tax changes are damaging the market.
Opposition Leader Michaelia Cash pointed to falling sales, builders going broke, and rents soaring. He said this proves the government's capital gains tax and negative gearing changes are backfiring.
The Housing Industry Association warned builders will struggle. This is especially true if interest rates rise further on top of the government's changes.
The government argues housing approvals are up 8%. They have risen for three straight years.
Housing Minister Clare O'Neil said the policy is redirecting investment. It moves money from existing homes toward new construction.
Sunrise host Nat Barr pressed O'Neil over the disconnect. Government data shows growth.
But builders are warning of crisis.
- 20 per cent
- Sales decline
- Up 8 per cent over 3 years
- Housing approvals trend
- Michaelia Cash
- Opposition Leader
- Clare O'Neil
- Housing Minister
Why it mattersHousing affordability directly affects rents, property prices, and whether Australians can own homes. This makes it a core election issue with real impact on millions.
AustraliaAustralians face tighter rental markets and fewer new homes being built, making housing affordability worse just as interest rates threaten to rise again.
✓ Claims checked against the source and corrected before publish. checked 9 d ago
