Labor housing tax reforms were expected to put downward pressure on prices
The Australian
Labor for Housing convenor Julijana Todorovic says a fall in home values was an expected consequence of the government’s changes to property tax concessions, arguing that rapidly rising prices needed to be restrained to improve access for younger Australians. Treasurer Jim Chalmers has also acknowledged the reforms are one factor behind the recent housing downturn, while noting that higher interest rates had already weakened demand. The debate comes as housing values have fallen across the capital cities and the Reserve Bank has warned the tax changes may also contribute to higher rents and weaker residential construction.
Australian housing affordability falls to a record low
Housing affordability deteriorated to a record low in the 2025–26 financial year. Realestate.com.au’s Housing Affordability Report found a median-income household earning about $125,000 could afford just 12% of homes sold nationally, down from 43% five years earlier. Higher mortgage rates following three RBA increases in early 2026 more than offset income growth and recent price softening, leaving borrowing capacity under pressure even as values eased in some markets.
NSW strata committee training rules start from 1 October
New NSW strata reforms commence on 1 October 2026. New and returning strata committee members will generally need to complete free online training within three months of appointment, with exemptions including two-lot schemes, strata managing agents and certain short-term vacancies. From the same date, two-lot strata schemes such as many duplexes will no longer need to complete annual Strata Hub reporting, reducing the compliance burden for smaller schemes.
NSW moves closer to 10-year apartment defect insurance
NSW has passed legislation laying the final groundwork for Decennial Liability Insurance, a 10-year insurance product intended to protect apartment owners against the cost of rectifying serious building defects. The cover is designed to stay with the building and respond even if the original developer or builder later becomes insolvent. Building Commission NSW will work with prospective insurers to align policies with the new legislative requirements before broader market rollout.
NSW Fair Trading steps up underquoting enforcement
NSW Fair Trading’s Strata and Property Taskforce has used undercover inspections at open homes to test whether agents’ advertised price guidance matches agency records and buyer feedback. The operation resulted in fines, warnings and mandatory education directions, reinforcing the state’s tougher approach to price transparency and underquoting compliance.
Australian gross rental yields are improving as rents remain elevated while property prices weaken. The shift may strengthen cash flow for some established investors, but higher yields can also reflect falling asset values, so investors still need to weigh rental income against financing costs and capital risk.
Housing downturn spreads across 93% of Australian suburbs
Australia’s housing downturn has spread to about 93% of suburbs. Treasurer Jim Chalmers’ Springwood market fell 4.5% over the past three months, with steeper declines recorded in several areas associated with senior Labor figures. Sydney values are now 7.1% below their February peak; Commonwealth Bank expects this cycle could ultimately produce a fall of about 13% in Sydney and roughly 9% nationally. Chalmers acknowledged Labor’s property tax reforms were one factor weighing on the market, while stressing that interest-rate rises had already weakened demand before the budget. Investment properties held by Labor MPs have also been affected, highlighting that federal politicians are more likely than ordinary voters to own multiple properties. Falling home values are beginning to weigh on consumer spending, and renewed rate-rise concerns are keeping buyers cautious, with last week’s auction clearance rate slipping below 50%.
Dwelling approvals fall 3.6% in July as the housing pipeline cools
The Australian Bureau of Statistics reports that seasonally adjusted dwelling approvals fell 3.6% in July 2026 to 17,687. Private-sector house approvals declined 4.2% to 10,199, while approvals for private dwellings excluding houses edged down 0.4% to 7,119. The value of total residential building approved fell 4.9% to $11.26 billion. For Sydney owners and investors, the monthly fall is another reminder that the future supply pipeline can remain uneven even while governments are trying to accelerate housing delivery; local approvals, construction starts and completion timing should be assessed separately when considering suburb-level supply pressure.
Australia building approvals — July 2026
Measure
July 2026
Monthly change
Total dwellings approved
17,687
−3.6%
Private-sector houses
10,199
−4.2%
Private dwellings excluding houses
7,119
−0.4%
Residential building value
$11.26b
−4.9%
Seasonally adjusted figures. Source: Australian Bureau of Statistics, Building Approvals, Australia, July 2026.
