property was described as sitting in \u201cone of the most commanding positions on the clifftop\u201d,<\/a> offering \u201cuninterrupted\u201d ocean views.<\/p>\nThe decline in the estimated value of the Prime Minister\u2019s home comes after Labor announced changes to housing tax settings in the federal budget.<\/p>\n
The controversial changes included restricting negative gearing benefits to new properties and imposing a minimum 30 per cent capital gains tax.<\/p>\n
The changes have sparked criticism from property investors and industry figures, who argue they have contributed to weaker demand.<\/p>\n
Cotality\u2019s Home Value Index (HVI), which analyses property sales data, fell 0.4 per cent in June \u2013 the largest month-on-month decline since December 2022.<\/p>\n
This came as dwelling values in Sydney dropped 1.2 per cent during the month while Melbourne reported a one per cent fall.<\/p>\n
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.<\/p>\n
Canberra was the only other city to record a house price drop, sinking 1.3 per cent during the quarter.<\/p>\n
Prices have also fallen as the RBA has lifted the cash rate by 75 basis points since the beginning of 2026.<\/p>\n
Cotality\u2019s research director Tim Lawless said these price shifts came as the market was rattled by the rate rises and tax changes.<\/p>\n
\u201cWeaker conditions through the second quarter of the year are attributable to an array of downside factors,\u201d Mr Lawless said.<\/p>\n
\u201cEven before interest rates rose by 75 basis points, we were seeing affordability hurdles weighing on buyer demand.<\/p>\n
\u201cHigher 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.\u201d<\/p>\n
The government has defended its housing policies, arguing Australia\u2019s affordability crisis was the result of years of inadequate supply.<\/p>\n
Housing Minister Clare O\u2019Neil recently made the bold claim that falling house prices were due to a normal market \u201ccorrection\u201d.<\/p>\n
\u201cLook, I think the housing market is cyclical in Australia, a very uncontroversial comment,\u201d Ms O\u2019Neil said.<\/p>\n
\u201cWe 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.\u201d<\/p>\n
Asked directly whether the country was in a market correction, Ms O\u2019Neil said: \u201cThat’s correct. I don’t think that’s controversial at all.\u201d<\/p>\n
\u201cWe’ve just been through what has been extremely high house price growth in the period from Covid, basically before Covid, to today.<\/p>\n
\u201cHouse prices have gone up just in that time by more than 50 per cent. And we are seeing a correction on that.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Prime Minister Anthony Albanese\u2019s $4.3 million clifftop mansion on the NSW Central Coast has been valued well below…\n","protected":false},"author":2,"featured_media":49165,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[483,22,4917,21,2038,35697,3545,4541,24025,156,3977,35696],"class_list":["post-49164","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-anthony-albanese","tag-au","tag-auspol","tag-austrlia","tag-capital-gains-tax","tag-copacabana","tag-housing","tag-housing-market","tag-housing-tax","tag-labor","tag-negative-gearing","tag-pms-mansion-plunges-in-value-in-wake-of-controversial-housing-changes"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/49164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/comments?post=49164"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/49164\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media\/49165"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media?parent=49164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/categories?post=49164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/tags?post=49164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}