Sales volumes and property prices eased over recent months. This suggests buyers and sellers are becoming more cautious. While the housing market has remained active, conditions have shifted in favour of buyers as more properties remain available for sale.
A key theme is the reduced participation of investors. Economists believe uncertainty ahead of the 2026 general election is playing a role in decision-making.
The Labour Party has proposed a capital gains tax on residential investment properties. This makes it harder for investors to assess future returns.
The possibility of other tax reforms may be adding to uncertainty. The prospect of significant changes are encouraging some investors to delay purchasing decisions.
The report found that some homeowners are postponing selling. However, the reduction in new listings has not been as large as the slowdown in sales. This leaves buyers with a wider selection of homes and greater negotiating power.
ANZ believes the balance of the market has shifted slightly towards buyers, making declines in house prices more likely. The bank is forecasting a 2 per cent decline in house prices during 2026.
Current conditions highlight how interest rates and government policy can influence buyer confidence. Until there is greater certainty about the economy and potential tax changes, many will take a wait-and-see approach.
What this Means for Individuals, Investors or Small Business Owners
Buyers have greater choice and improved negotiating power, while sellers could face longer selling periods and greater competition. Investors may wish to assess how possible policy changes could affect future investment returns.
Any Potential Tax, Record-keeping or Compliance Considerations
Proposed tax changes could affect future decisions. Owners should maintain accurate records in case future tax rules require this information.
Practical Actions Readers May Wish to Discuss with Their Accountant
Review the potential impact of proposed tax policies on investment properties. Also, ensure property records are complete and up to date for future tax planning.
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Disclaimer:The information in this article is general in nature and does not constitute financial, investment, taxation, legal or accounting advice. Readers should obtain professional advice relevant to their individual circumstances before acting on any information contained in this publication.
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