Australian real estate stocks rise as budget targets first-home buyer affordability

Mirvac

13/05/2026 06:42

May 13 (Reuters) - Australian real estate stocks .AXRE were set for their best session in nearly a week on Wednesday, led by gains in developers such as Mirvac MGR.AX and LendLease LLC.AX.

The rally reflects investor optimism that the government's 2026-2027 budget, which introduced fresh housing-support measures for first-home buyers, could redirect investor demand toward new builds, supporting housing supply and construction activity.

Here are some more details:

The budget proposes limiting negative gearing to newly built homes in a bid to support new housing supply.

Negative gearing lets property investors deduct rental losses from taxable income, a tax break the budget now aims to steer toward new-build homes.

NAB analysts see investor borrowing potentially becoming more closely linked to new housing construction because negative gearing remains available for investors in new builds.

Additionally, the government plans to scrap the 50% capital gains tax (CGT) discount on assets held for more than a year from July 1, 2027.

Property investment firm Mirvac Group saw as much as a 3.9% rise in its best intraday session since February 18, while LendLease recorded as much as a 4.6% rise in its best intraday session since April 8.

Shares of other firms like Stockland Corp SGP.AX rose as much as 5% in its best intraday session since August 20, 2025.

Housing-related stocks like Breville Group BRG.AX and GWA Group GWA.AX were up as much as 1.5% and 3.2% respectively. Breville designs small kitchen appliances, while GWA is a construction products supplier.

Analysts at NAB Economics and Markets Research say the reforms could bolster financial stability by curbing incentives for highly leveraged property investment, but may weigh modestly on house prices and add near-term pressure to rents.

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Nivedita Bhattacharjee)

 ((Shivangi.Lahiri@thomsonreuters.com;))