While the property lobby and the Coalition continue to argue that Labor’s negative gearing policy will magically push up rents, AMP Capital’s chief economist, Shane Oliver, has argued the opposite: that Labor’s policy will lead to “investors piling into new buildings as opposed to old buildings”. From The Saturday Paper:
The impact of negative gearing on the property market has been “exaggerated”, says Shane Oliver. He adds that reforms are necessary, but restricting the policy to new buildings may distort the market.