PHOTO: The report also confirms that negative gearing and the capital gains tax discount incentivise housing investors to take on debt. Photo: Peter Braig
The spectacular boom in Australian property prices has finally and officially buckled – national prices have recorded their first negative year since 2012.
Rather than dwell on who was right about calling the top of the property market, economists have turned their attention to predicting the size of the correction. And while forecasts vary considerably, the experts agree the slide is only just getting underway.
With prices now about 2 per cent below their December 2017 peak, according to Domain Group data, the downturn could be as little as one-sixth of the way through or as much as halfway, depending on which economist you ask. But all say a house-price bounce won’t be seen until noticeably more cash is wiped off Sydney and Melbourne’s median prices.
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