Investor pullback as rate hikes and tax changes bite

Key points

• Property investment fell 9 per cent in the June quarter, according to a realestate.com.au report released today. The decline follows strong growth in 2024 and 2025.
• Economists link the drop to four interest rate rises and May federal budget changes to capital gains tax discounts and negative gearing for established rental properties. Investor loans have fallen, although about 93 per cent of investment resales this year sold for more than their purchase price.
• Rental markets remain tight, and economists expect yields to rebalance over the next six to 12 months.