Seven months of falls, an 18-year rate high and a 1 July 2027 deadline: what Australia's property reset means for buyers of new land

Australia's property market heads into summer under the most pressure in almost two decades. On Melbourne Cup Day, 3 November, the Reserve Bank lifted the cash rate by 25 basis points to 4.85%. The board split 6-3, and it was the fifth increase of 2026, taking the rate to its highest level since 2008. Cotality's national Home Value Index fell 1.2% in October, the seventh monthly decline in a row, leaving values 6.7% below the March 2026 peak.

New homes have been hit hardest. HIA reported that new-home sales fell 17.5% in the September quarter, their lowest level in 18 months and 16.4% lower than a year earlier. Queensland fell 26.3% and Victoria 23.3%. Cancellations rose to 13.6% as buyers lost finance approval while rates climbed.

Tax policy points the other way. Under the changes announced in the 12 May 2026 Federal Budget, negative gearing for residential property bought after Budget night is limited to new builds from 1 July 2027. Investors who buy new builds also keep the choice of the existing 50% capital gains tax discount. Investors who buy an established home today will lose the ability to offset rental losses against their wages once the changes start. Existing owners are fully grandfathered. Read our Budget 2026 new-build summary.

Put together, softer prices, the largest capital-city vendor discounts since 2019, and volume builders facing their weakest sales in 18 months mean buyers of new land are negotiating from a stronger position, while the new-build tax treatment remains in place.

For buyers weighing a purchase before 1 July 2027, InvestHome recommends four checks. First, get finance pre-approval at today's rates, including the lender's serviceability buffer. Second, confirm the property counts as a new build: generally a new dwelling built on vacant land, a house-and-land package, or a knockdown that adds dwellings. Third, check the land settlement and construction timelines. Fourth, confirm your personal tax position with a registered tax agent.

For developers, builders and agents, fewer active buyers and longer selling times make it more important to reach motivated buyers directly. InvestHome lists land releases, lots, house-and-land packages and townhomes nationwide. Buyers can search interactive lot maps, set alerts that match their saved preferences, and chat with sellers in the app. Standard listings remain free during the promotional period.

"The headlines say the market is falling, and for established homes that is true. New land is more nuanced. Prices are softer, sellers are negotiating, and from 1 July 2027 the tax rules favour new builds. Buyers who have their finance sorted and know what qualifies as a new build are in a stronger position than they have been in years. Our job is to put every option in one place so they can compare them properly," said Rajan Garg, Founder of InvestHome.

InvestHome is available now at https://investhome.au and as a mobile app on the Apple App Store and Google Play. Read InvestHome's Budget 2026 new-build summary at https://investhome.au/budget-2026-new-build-advantage

Sources: Reserve Bank of Australia (3 November 2026); Cotality Home Value Index (October 2026); HIA New Home Sales (October 2026); budget.gov.au.

This release is general information only and is not personal financial, tax or legal advice. Always confirm your situation with a licensed adviser or registered tax agent.

About InvestHome
InvestHome is an Australian land marketplace for first-home buyers and investors, listing land releases, lots, house-and-land packages, townhomes, acreage, and commercial and industrial land nationwide. InvestHome is operated by State Financial Assets Pty Ltd.

Media contact
Rajan Garg, Founder
InvestHome (State Financial Assets Pty Ltd)
Email: support@investhome.au
Web: https://investhome.au