Housing Minister Clare O'Neil has defended the Australian government's housing policies, stating that a softening property market represents a "win" for first-home buyers. Her comments came in response to criticism from the opposition, which questioned a reported decline in the number of first-home buyers this year.
Australian Bureau of Statistics data indicates that first-home buyer loan commitments fell to 29,319 nationally in the June quarter, a decrease from 30,210 in the preceding quarter. New South Wales saw the largest drop at 7.4 percent, followed by Western Australia at 5 percent and Victoria at 3.3 percent. The opposition has attributed this trend to Labor's recent budget changes, including the removal of negative gearing from existing builds and the reduction of the capital gains tax discount, arguing these measures have decreased demand and contributed to falling property prices.
O'Neil rejected these claims, asserting that her government has facilitated more first-home buyers annually than any previous government in Australian history. She highlighted the expansion of the Home Guarantee Scheme, which enables eligible buyers to purchase a home with a 5 percent deposit without needing to pay lenders mortgage insurance. According to O'Neil, this program has assisted 260,000 Australians in becoming homeowners.
"For the first time in 25 years, first home buyers are standing on a level playing field," O'Neil stated in Parliament. She argued that recent tax reforms have shifted the market away from investors and towards owner-occupiers, ending a system where young people, she contended, were subsidizing investors outbidding them at auctions.
Recent housing market data shows a national decline in capital city house prices by 1.4 percent and a 1.3 percent fall in combined capital city dwelling prices in the June quarter. Sydney experienced a 2.9 percent decrease, and Melbourne saw a 2.5 percent drop, marking the first broad downturn in over three years. O'Neil suggested this cooling market is creating opportunities for first-home buyers, citing an example in Melbourne's Footscray where a two-bedroom house sold for $817,000 after being passed in at auction. The property was purchased by a young couple buying their first home.
However, Shadow Housing Minister Andrew Bragg labeled Labor's housing measures a "gimmick," claiming that construction activity has fallen behind the pace set under the previous Coalition government. Bragg asserted that Labor is falling short of its target to build 1.2 million homes, citing lower annual dwelling completions compared to the Coalition's tenure. Industry forecasts suggest the government could miss its target by 250,000 to 285,000 homes.
Prime Minister Anthony Albanese has previously supported the housing tax reforms, echoing sentiments from financial commentator Scott Pape who described negative gearing and capital gains tax concessions as "taxpayer-funded landlord welfare" and emphasized that homes should serve as residences rather than speculative assets.