Investor Exodus Threatens State Government Revenues

The Albanese government's May budget changes to negative gearing and capital gains tax concessions, now favoring new builds, are linked to this investor exodus. This has resulted in a more than $4 billion reduction in the value of investor loans.

This significant investor withdrawal could impact the development pipeline in Melbourne's western growth corridor, potentially slowing the delivery of new housing. It also suggests a shift in market dynamics, with fewer investors competing for established properties.