NZ Decides To Slow Down House Prices: What It Means For Australia

Published by Otto Dargan on March 26, 2021

New Zealand has introduced new tax policies to slow down investors after house prices were pushed up almost 25% in just 12 months.

Australia has experienced similar house price rises over the year. However, according to experts, removing tax benefits linked to property investment is not likely on the Australian government’s cards at the moment.

The reasoning behind such a prediction was:

  • House prices in Australia have risen less sharply compared to New Zealand.
  • The Reserve Bank has been highlighting the positive effect of higher house prices.
  • An attempt to reform taxation was thoroughly defeated in the federal election challenge in 2019.
  • The Australian government has bigger fish to fry currently than concerns over housing affordability.
  • What will happen to the Australian property market then?

    According to ANZ’s predictions, Australian property prices will continue growing at a rate of 17% for the next few months.

    Adelaide is expecting a 13% jump, with Melbourne and Brisbane at 16%, respectively. ANZ forecasts an 18% rise for Tasmania.

    However, the leaders at an expected jump rate of 19% are Sydney and Perth, which sees a prediction of its market moving significantly for the first time in 10 years.

    What does it mean for Australian homebuyers?

    If ANZ predictions were to be accurate, then the national median house price would see a rise of $145,000 in just a year, jumping from $852,940 to $997,940.

    This means that if you wait to save a deposit, you may not be able to afford the house you were looking to buy in a few months.

    It may be best to buy now to avoid getting priced out of a home that you like.

    Even if you have a low deposit, our mortgage brokers are experts at finding options available for your situation. Please call us at 1300 889 743 or fill in our free online assessment form, and one of our brokers will get back to you to discuss your situation in detail.