What the Laws Are Doing to the Australian Property Market
Borrowing capacity is set by the assessment rate
Lenders test at 3.0 points above the loan rate. At the June 2026 average new variable rate of 6.25%, that reduces the largest approvable loan by 25.2%. A debt-to-income limit has applied since 1 February 2026.
Approvals have tilted toward houses
Townhouses, units and apartments were 38.7% of homes approved in the June quarter 2026, the second quarter in a row below average, as house approvals reached their highest since September 2021.
Social housing’s share keeps falling
Social housing was 3.98% of all homes at 30 June 2025, down from 4.69% in 2012 and lower in every year of the record.
Each area is shown on its own latest period. Standardised readings compare a measure with its own usual level; policy registers record the rules and publish a headline in plain units instead.
| Area | Reading | Period | Position | What it means |
|---|---|---|---|---|
| Tax Laws (21310) | −0.0934σ | 2024–25 | 46.3, indicative (14 years) | Duty collected was 0.303% of the value of all homes, close to average. The duty covers all property sales, so read the measure as a trend. |
| Planning Regulations & Zoning Policy (21320) | −0.4770σ | June qtr 2026 | 38.5 of 66 quarters | Townhouses, units and apartments were 38.7% of homes approved. The share fell because more houses were approved. |
| Housing Policy (Affordable, Social) (21330) | −1.2971σ | 30 June 2025 | 9.7, indicative (14 years) | Social housing was 3.98% of all homes, the lowest share since 2012. |
| Foreign Investment Policy (21340) | Policy register | September qtr 2026 | None by design | Extra duty and fees on a $1m new home: 1.56% to 10.56% by jurisdiction. Established homes closed to foreign buyers, 1 April 2025 to 30 June 2029. |
| Banking & Lending Regulation (21350) | Policy register | June qtr 2026 | None by design | The assessment rules reduce the largest approvable loan by 25.2%. Buffer 3.0 points; debt-to-income limit 20%. |
| Sustainability & Environmental Policies (21360) | NIL RETURN | — | — | A register of energy and environmental settings for new homes is in design. Adoption dates are in Section 5. |
| Tenancy & Consumer Protection Law (21370) | NIL RETURN | — | — | A register of tenancy settings in all eight states and territories is in design. |
| Government-Owned Dwelling Delivery (21381) | +0.2697σ | June qtr 2026 | 33.5 of 168 quarters | Government-owned homes were 2.2% of new homes started; the reading also counts completions. It measures government-owned homes only, not all social or affordable housing. |
A position shows where a reading sits against its own history, from 0 for the lowest to 100 for the highest. Tax Laws (21310) and Housing Policy (21330) have 14 annual observations, fewer than the 20 needed to rank, so their positions are estimated from the reading itself and marked indicative.
For Sales Agents
Borrowing capacity is set by the assessment rate, not the loan rate: at 6.25%, buyers are tested at 9.25%. Buyers with large loans relative to income may also meet the debt-to-income limit, which exempts loans for new homes. Foreign buyers cannot buy established homes until at least 30 June 2029, except in narrow cases.
For Property Managers
Social housing’s falling share means more lower-income households are looking in private rental. Tenancy laws differ by state and territory, and APN’s register of them is still being built, so check the current Act in each jurisdiction you manage in.
For Developers & Builders
Energy standards apply from different dates in each state, and not at all in Tasmania (Section 5). House approvals rose in 2026 while other approvals held near their usual level. APN Residual Land Value (RLV) Gap™ (24410) tracks the feasibility of new residential development.
For Investors
From 1 July 2027, losses on established homes bought from 7.30 pm AEST on 12 May 2026 can only be deducted against residential income and gains, and the capital gains tax discount is replaced, except on new homes, for gains after that date. Foreign buyers pay surcharges in most states. Stamp duty overall is close to its usual level.
Social housing grew by 25,311 homes between 30 June 2012 and 30 June 2025, from 426,488 to 451,799. Over the same period, all homes grew by 24.8%, about 2.26 million. Social housing’s share of all homes therefore fell from 4.69% to 3.98%, and it fell in every year of the record.
A smaller share leaves more lower-income households looking in private rental, at the same time as borrowing rules keep some would-be buyers renting for longer. Both add to demand for the same rental homes. Neither changes quickly: social housing’s share has moved by less than a tenth of a percentage point in every year of the record.
The 2022 National Construction Code requires a new home to reach a 7-star energy rating and meet a whole-of-home energy budget. Adoption dates, as recorded by the Australian Building Codes Board and, for Queensland, the Queensland Government:
| State or territory | Energy standards for new homes |
|---|---|
| New South Wales | Through BASIX, the state’s own sustainability standard, from 1 October 2023 |
| Australian Capital Territory | From 15 January 2024 |
| Victoria | From 1 May 2024 |
| Queensland | Through the Queensland Development Code; required since 1 May 2024 |
| South Australia | From 1 October 2024 |
| Western Australia | From 1 May 2025 |
| Tasmania | Not adopted |
| Northern Territory | Housing limited to a 5-star requirement, from 1 October 2023 |
Anyone building in more than one state should check which standards apply where. APN is building a register of these settings; until it is complete, no standardised reading is published for this area.
- Lending
Debt-to-income limit, first year. The limit has applied since 1 February 2026. APRA’s quarterly property exposure statistics, next released in December 2026, show the share of new lending at high debt-to-income ratios.
- Planning
September quarter 2026 approvals. Due from the ABS on 2 November 2026. They will show whether the tilt toward houses continued.
- Tax
Commonwealth changes from 1 July 2027. Limits on deducting losses from established homes bought from 12 May 2026, and the replacement of the capital gains tax discount for gains after that date, change investor feasibility from the 2027–28 income year.
- Foreign
Established-home ban. Scheduled to end on 30 June 2029, as extended in the 2026–27 Budget.
