Prime Minister Anthony Albanese’s $4.3 million clifftop mansion on the NSW Central Coast has been valued well below its purchase price less than two years after he bought it.

The property plunge comes as Australia’s housing market slows amid rising interest rates and Labor’s changes to negative gearing and capital gains tax.

PropertyValue.com.au data from July 2026 estimated the value of Mr Albanese’s Copacabana home between $3.75 million and $4 million.

The data suggests Mr Albanese’s house could be worth up to $550,000 less than the $4.3 million price he paid in October 2024.

Across the broader Copacabana market, RP Data figures from Cotality showed the median property value had fallen 4.8 per cent over the past 12 months.

Mr Albanese purchased the two-storey clifftop property in 2024, with the home featuring four bedrooms, three bathrooms and expansive ocean views.

At the time, the property was described as sitting in “one of the most commanding positions on the clifftop”, offering “uninterrupted” ocean views.

The decline in the estimated value of the Prime Minister’s home comes after Labor announced changes to housing tax settings in the federal budget.

The controversial changes included restricting negative gearing benefits to new properties and imposing a minimum 30 per cent capital gains tax.

The changes have sparked criticism from property investors and industry figures, who argue they have contributed to weaker demand.

Cotality’s Home Value Index (HVI), which analyses property sales data, fell 0.4 per cent in June – the largest month-on-month decline since December 2022.

This came as dwelling values in Sydney dropped 1.2 per cent during the month while Melbourne reported a one per cent fall.

The drop contributed to a massive 3.2 per cent decline in Sydney property values during the June quarter and a 2.6 per cent crash in Melbourne prices.

Canberra was the only other city to record a house price drop, sinking 1.3 per cent during the quarter.

Prices have also fallen as the RBA has lifted the cash rate by 75 basis points since the beginning of 2026.

Cotality’s research director Tim Lawless said these price shifts came as the market was rattled by the rate rises and tax changes.

“Weaker conditions through the second quarter of the year are attributable to an array of downside factors,” Mr Lawless said.

“Even before interest rates rose by 75 basis points, we were seeing affordability hurdles weighing on buyer demand.

“Higher cost-of-living pressures, deeply pessimistic sentiment and a further dampening of demand via property taxation changes announced in the federal budget are all contributing to weaker housing conditions.”

The government has defended its housing policies, arguing Australia’s affordability crisis was the result of years of inadequate supply.

Housing Minister Clare O’Neil recently made the bold claim that falling house prices were due to a normal market “correction”.

“Look, I think the housing market is cyclical in Australia, a very uncontroversial comment,” Ms O’Neil said.

“We see periods of very significant house price growth, and then we see the market make a correction. And that’s what we’re seeing at the moment.”

Asked directly whether the country was in a market correction, Ms O’Neil said: “That’s correct. I don’t think that’s controversial at all.”

“We’ve just been through what has been extremely high house price growth in the period from Covid, basically before Covid, to today.

“House prices have gone up just in that time by more than 50 per cent. And we are seeing a correction on that.”