2019 was a tale of two halves for Australia’s housing market.
When the year began, housing values were in a deep downturn and confidence was at rock bottom. The Hayne Banking Royal Commission was about to deliver its final report and Labor were odds on favourites to win the May Federal Election, which was to usher in negative gearing and capital gains tax (CGT) reforms that would further smash dwelling values.
The rest is history. The housing market was turned on its head when the Morrison Government unexpectedly won the unwinnable election on 18 May. Labor’s negative gearing and CGT reforms were jettisoned. First home buyer (FHB) deposit subsidies were announced. The Australian Prudential Regulatory Authority (APRA) announced cuts to both its interest-rate buffer and smaller bank mortgage capital requirements. And the Reserve Bank of Australia (RBA) began furiously slashing interest rates.
