New tax settings from 1 July 2026 favour new stock over established dwellings

The new tax settings, starting 1 July 2026, will see purchasing decisions for established and new dwellings diverge. Existing stock will lose access to negative gearing and CGT concessions, placing downward pressure on established unit prices.  

New stock will retain access to both negative gearing and the existing 50% CGT discount, giving infill products a pricing and investment advantage. 

Melbourne’s unit market continued to edge upward in Q1 2026, with the median reaching $659,500, a 1.1% increase on the prior quarter. Growth has slowed noticeably compared to the end of 2025, and the pattern of price appreciation has shifted across rings.