The budget's tax whack on property investors will accelerate a housing slowdown caused by interest rate hikes, potentially causing the biggest downturn in more than 40 years.
Home price growth was already slowing nationwide, with outright falls in Sydney and Melbourne, following three straight Reserve Bank rate rises.
But the changes to negative gearing and capital gains tax concessions in the federal budget could cause housing prices to fall by up to 10 per cent, Morgan Stanley analysts said in a research note on Thursday.
