Prime Minister Anthony Albanese’s new tax laws have given luxury homeowners a lucrative incentive to hold onto their properties and collect high rental returns, according to a real estate expert. 

Brisbane and Gold Coast agent Glenn Price has criticised the changes to negative gearing and the capital gains tax discount announced in the Federal Budget in May.

From July 1 next year, new investment property owners will no longer be able to claim back the costs or interest of their asset under negative gearing.

Properties purchased before the May 12 Budget are grandfathered, allowing owners to keep the benefit.

Mr Price said the reforms removed any urgency for owners to sell, with some landlords collecting up to $30,000 a week in rent while waiting for property values to rise. 

‘Phantom inventory is a polite way of saying rich people don’t have to sell if they don’t feel like it,’ he told the Daily Mail.

‘No mortgage stress, no urgency, no reason to budge. The government just built a very expensive incentive for luxury owners to never sell again.

‘Keep the capital gains tax grandfather rules alive by simply not selling, bank an exorbitant weekly rent while you wait. Almost makes you think it was designed by someone who owns one.’

Buyers’ agent Glenn Price (pictured) said owners at the top end of the market could afford to play a waiting game that many Australians could not 

Critics argue the measures announced by Prime Minister Anthony Albanese in the May Budget have encouraged some investors to hold rather than sell 

The suburb of Vaucluse (pictured) in Sydney is one of the priciest postcodes in Australia

Mr Price said the stand-off would continue for as long as owners were rewarded for delaying a sale.

‘The only thing that shifts it is a desperate seller or a desperate buyer, and right now neither side has to be,’ he said.

‘Why would they blink first when they’ve just been handed every reason not to?’

The comments come as Sydney’s housing downturn deepens, with fresh figures showing 91 per cent of suburbs recorded house price declines over the three months to July.

More than 200 suburbs saw median values fall by at least $100,000, with the sharpest declines concentrated in some of the harbour city’s most exclusive postcodes.

More than $300,000 has been wiped from median house values in Cremorne, Fairlight, Manly, Mosman and Balgowlah Heights alone. 

REA Group senior economist Anne Flaherty said national home prices have fallen for four consecutive months, with prices down in every capital city except Darwin in July.

‘Further price falls are likely to be seen over the coming months,’ she said.

Economist Anne Flaherty (pictured) said ongoing price falls could be prompting some buyers to delay purchases until prices stabilise 

‘While inflation moderated in June, it remains elevated and there is still a risk that interest rates could move higher before the end of the year.’

Ms Flaherty said high interest rates were weighing on prices with the impact of reduced borrowing capacities being exacerbated by ongoing cost of living pressures.

‘Budget tax changes are also likely impacting overall buyer confidence, while ongoing price falls could be driving some buyers to delay purchasing until prices stabilise,’ she said.

Real Estate Buyers Agents Association of Australia president Melinda Jennison said the gap between the price sellers hope to get and what buyers are prepared to pay has widened sharply in recent months, creating difficult conditions for both sides to navigate.

‘We’re seeing a clear divergence in expectations,’ Ms Jennison said.

‘Many vendors remain anchored to price expectations from several months ago, while buyers are responding to softening sentiment and changing economic conditions.

‘When those two positions don’t move toward each other, negotiations often stall, and that’s exactly what we’re seeing on the ground.’

Among the properties currently on the market at a discounted price is a Balgowlah Heights house listed with a $6.3million guide, down $1.2million from its 2025 price guide of $7.5million, according to property records.

Pictured, a Bellevue Hill estate overlooking Sydney Harbour is listed for rent at $25,000 a week, potentially generating about $1.3million a year for its owner 

Another home at 13 Queens Avenue in Vaucluse was marketed with hopes of achieving $50million last March, but is now expected to carry a guide in the mid-$40million range. 

Ms Jennison said the stalemate is evident even in suburbs where competition remains strong.

‘In some areas, we’re still seeing multiple offers or several bidders competing at auction for a property, but they’re not converting to sales,’ she said.

Luxury Property Rentals Cobbold & Co owner Penelope Cobbold said many owners were now choosing to become landlords rather than slash their asking prices. 

‘Almost every week, we receive calls from homeowners who have had their properties on the market but haven’t achieved the price they were hoping for,’ Ms Cobbold told the Manly Daily.

‘Rather than continuing to reduce the asking price, they’re asking us what they could achieve by renting the property instead.

‘We’re seeing luxury homes rent for up to $30,000 a week, with some owners achieving more than $700,000 a year in rental income.’

Among them is a Bellevue Hill estate overlooking Sydney Harbour that is listed for $25,000 a week in rent, or about $1.3million a year.

Meanwhile, a sprawling 100-acre property in the Byron Bay hinterland is seeking $15,000 a week in rent, generating potential annual income of $780,000.