Jim Chalmers says fewer homes selling at auction may be a ‘good thing’ for first-time buyers

The treasurer, Jim Chalmers , has suggested falling auction clearance rates may be a “good thing” for first home buyers if it means they aren’t competing against as many property investors. After data was released showing home prices in Australia’s capital cities had begun to fall and buyers were abandoning auctions, Chalmers on Monday said Labor’s proposed property tax reforms weren’t the only thing slowing the housing market. The Albanese government plans to wind back generous concessions for property investors by replacing the 50% capital gains tax (CGT) discount with an indexation model and restricting negative gearing to new builds only. Chalmers downplayed the effect of the budget on declining auction clearances, saying the recent string of interest rate rises and “broader economic conditions” were also at play. “Some of those clearance rates were coming down already and the budget is not the only factor when people are thinking about participating in those auctions,” he said. “But if we are making it easier for first home buyers to get a fair crack at auctions, then that’s a good thing.” Sign up for the Breaking News Australia email Auction success hit a new low for the year on the last Saturday in May, with just 54.5% of homes sold after being listed for auction, according to Cotality’s preliminary national clearance data released on Monday. …