Proposed changes to Australia’s property tax framework have triggered a massive shift in investor behaviour, sparking a 65.6% national spike in online enquiries for off-the-plan and new apartments.
Data from Apartments.com.au reveals that investor interest spiked dramatically in the immediate week following the Federal Budget announcement on May 12. The sudden wave of activity pushed national investor enquiry levels to roughly 95% above the 2026 weekly average recorded prior to the Budget.
The rapid shift highlights how quickly the market has reacted to the Federal Government’s proposed reforms to negative gearing and capital gains tax (CGT) concessions – specifically, the strategic carve-outs and exemptions retained for newly built and off-the-plan housing.
A turning point for housing supply
According to Mike Bird, CEO of Apartments.com.au, the policy shift could mark a monumental transition for the nation’s construction pipeline.
“While much of the conversation around the reforms has centred on investors potentially pulling back from established housing, the reality is that new and off-the-plan apartments may emerge as one of the biggest beneficiaries,” Mr. Bird said.
“For years, governments at both the state and federal levels have spoken about the need to increase housing supply. The challenge has always been finding a way to encourage private capital back into delivering new homes at scale – these policy settings may now do exactly that.”
State-by-State breakdown: where investors are flocking
While Queensland sustained the highest overall volume of investor inquiries, riding a wave of elevated demand sustained throughout 2026, the sharpest post-Budget spikes were concentrated across Victoria, New South Wales, and South Australia.
Key metropolitan markets like Melbourne, Brisbane, and portions of Sydney experienced immediate gains, driven heavily by the widening affordability gap between detached houses and new apartments.
- Victoria: Led the nation with a staggering 151% week-on-week spike in enquiries following May 12.
- New South Wales: Followed closely with a 102% increase in weekly investor activity.
| State | Top Suburbs for New & Off-the-Plan Investor Interest (May 2026) |
| Victoria (VIC) | Melbourne CBD & surrounds, Brunswick, Brighton, Footscray, Fitzroy |
| New South Wales (NSW) | Newcastle West, Kensington, Macquarie Park, Caringbah, Chatswood |
| Queensland (QLD) | Palm Beach, Broadbeach, Coolangatta, Mermaid Beach, Surfers Paradise |
The abrupt pivot toward the apartment sector highlights the enduring financial advantages of new builds in the wake of policy changes.
Alongside essential tax exemptions, new properties continue to offer substantial depreciation benefits, minimal maintenance overheads, and more accessible entry-level pricing relative to established houses.
With higher interest rates and general economic headwinds keeping many owner-occupier buyers on the sidelines, strategic opportunities have opened up for property investors.
“That creates an opportunity for investors to secure quality assets in projects that are often better designed, more sustainable, and located in infrastructure-rich precincts tied to transport and urban renewal,” said Mr Bird.