New analysis reveals a 10 per cent drop will wipe $1.3t from property values

Falling home prices fuelled by Albanese government property tax reforms and higher interest rates will strip an expected $1.3 trillion from Australia’s total wealth, new forecasts have revealed. The modelling by Primara Research measured what recent ANZ predictions of a 10.6 per cent fall in national property prices over the next two years would cost the economy, indicating it would make the country poorer. Australian households were forecast to lose a total $527.5 billion in 2026 alone. It was noted that close to 57 per cent of the country’s household wealth was tied up in residential property, making housing market downturns a significant strain on the economy. MORE: ANZ reveals when home prices will start growing again ANZ projected a 10 per cent downturn in property prices on Tuesday. Picture: NewsWire / Gaye Gerard MORE: ‘Worst time’ to be a first-home buyer in 56yrs Australia’s residential housing market is currently valued at about $12.7 trillion across roughly 11.5 million dwellings. NSW represents about 40 per cent of the nation’s housing market and is expected to have the largest falls in prices, with ANZ forecasting a 14.5 per cent average drop in Sydney values over the ...