Safe as houses: The markets weathering the post-Budget storm

Ray White economist Atom Go Tian says no change to the property market has been as effective as the federal budget. Atom Go Tian In a year that seems hellbent on turning this market around, no change has been as effective as the Budget. So much so that it is an event now worthy of discussion in the context of a “pre” and a “post”. Atom Go Tian says buyers of all types have pulled back, which means recovery depends on how sellers respond. Picture: Brendan Radke In our case, pre-Budget means the three years from May 2023 to May 2026. Once known as the post-Covid “new normal”, this period saw extreme growth powered by mass interstate migration, supply shortages, interest rate cuts and first home buyer-targeted government incentives. Now, what has happened post-Budget? House prices have fallen across the country, from regional areas to major cities, regardless of price level or prior growth. Atom Go Tian says for simplicity, there are two kinds of markets: those that grew strongly before the Budget, and those that didn’t. Although investors were the main target of the changes to negative gear and capital gains tax, buyers of all types have pulled back, which means recovery (if it is ev...