The housing market is in turmoil, and it's all the fault of the Labor government, according to the Liberal Party's deputy leader, Jane Hume. The latest data from property analytics firm Cotaity reveals a national auction clearance rate of just 50%, a significant drop from the previous week's 54.8%. This marks nine weeks of persistently weak figures, and it's a trend that's causing concern among investors and first-time buyers alike.
Hume argues that the Labor government's policies are to blame for the weakening housing market. She points to the government's move to limit negative gearing to new builds and properties purchased before budget night, as well as the scrapping of the capital gains tax discount and its replacement with an inflation-adjusted model with a minimum 30% rate. These changes, she claims, have created a lack of certainty and confidence in the market, leading to a decrease in the number of homes being built and a reluctance among first-time buyers to enter the market.
The situation is further exacerbated by the Reserve Bank of Australia's decision to hike the cash rate three times in 2026. This, combined with the Labor government's tax changes, is pushing vendors towards private sales as the risk of public auction failure rises. Hume argues that this is a direct result of the government's policies, stating, 'If you tax something more, you get less of it.'
The impact of these policies is evident in the auction clearance rates in Sydney, Melbourne, and Brisbane. Sydney's clearance rate fell sharply to 47.4%, Melbourne's rose slightly to 56.5%, and Brisbane recorded a historic low of 35.9%. These figures highlight the widespread impact of the government's policies on the housing market across the country.
Hume's comments reflect a broader concern among the Liberal Party about the state of the housing market. She argues that the Labor government's policies are failing Australians and that the situation is a direct result of the government's mismanagement of the economy. However, it's worth noting that the Labor government has defended its policies, arguing that they are necessary to ensure a sustainable and fair housing market.
The question remains whether the Labor government's policies are indeed the primary cause of the weakening housing market. While the data suggests a correlation, it's essential to consider other factors, such as economic conditions and global trends, that could be influencing the market. Despite this, Hume's comments highlight the political tensions surrounding housing policies and the ongoing debate about the best approach to ensure a stable and affordable housing market for all Australians.
