Australian Budget Could End Up Hurting Homebuilders -- Market Talk
Dow Jones
May 13
0156 GMT - Australia's federal budget appears to be a double-edged sword for Stockland and Mirvac. A change to negative gearing rules doesn't cover new-build dwellings, which are a key business of Mirvac and Stockland. However, Morgan Stanley says changes to negative gearing and capital gains tax could sour sentiment toward the property market more broadly, including by lowering selling prices. This could end up hurting developers even if volumes hold up. "Theory aside, a decline in resi prices (as expected by the budget) could at least slow down transactions over the next 3-12 months, affecting the outlook for FY27/28," analyst Lauren A. Berry says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
May 12, 2026 21:56 ET (01:56 GMT)
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