Australia’s federal budget changes to negative gearing and the capital gains tax indexing model have prompted a reassessment of housing investment returns. In Sydney and other markets, prices retreated in the weeks after the announcement, with some homes selling A$100,000 to A$300,000 below earlier appraisals. National home prices have fallen for three consecutive months, including a 0.3% month-on-month drop in June, the largest monthly decline so far this year. The shift has weighed on valuation assumptions for Australian listed property trusts (A-REITs) and added pressure to banks with mortgage-heavy exposure.