Demand set to increase for new builds
INDUSTRY INSIGHTS
CHP Group Owner and Managing Director Jordan Heyer shares his insights on the current market and recent housing measures announced in the Budget.
The 2026 Federal Budget includes what may prove to be some of the most significant housing policy reforms in recent Australian history. While housing affordability has remained a recurring political issue for decades, this year’s Budget represents a deliberate shift away from demand-side stimulus and towards policies designed to increase housing supply. It’s a shift that carries with it a myriad of opinions and political reviews.
“Increased investor demand for new housing may strengthen pre-sales performance, improve project feasibility and provide greater confidence for lenders and equity partners.”
The headline property reforms are significant. From 1 July 2027, negative gearing concessions and associated tax incentives will be limited to newly constructed dwellings. At the same time, the long-standing Capital Gains Tax (CGT) discount has been replaced with an inflation-indexation model incorporating a minimum 30 per cent tax on capital gains. Existing investments have been grandfathered into the previous regime, allowing existing owners to maintain their eventual capital gains concessions.
This policy shift arrives at a critical time for the Gold Coast, Tweed and Byron region. The area remains one of Australia’s fastest-growing markets, supported by strong interstate migration, ongoing population growth and a persistent shortage of housing stock. Demand continues to outpace supply across a range of product types, from entry-level housing through to medium-density residential developments and apartment projects. Whether the increased focus on new residential stock investment will further exacerbate the negative impacts of slow supply, remains to be seen.
Growth corridors such as Pimpama, Coomera and Tweed Heads continue to absorb significant population growth, while activity centres including Robina and Southport are increasingly identified as key locations for higher-density residential development. Along the coastal strip, apartment projects remain essential to future housing supply despite ongoing feasibility pressures. In many locations, particularly across the Tweed, low- and medium-density developments are gradually replacing traditional detached housing.
For developers and investors, the Budget may alter the conditions for project delivery. Increased investor demand for new housing may strengthen pre-sales performance, improve project feasibility and provide greater confidence for lenders and equity partners. This is particularly relevant for apartment and townhouse developments, where securing sufficient pre-commitments remains one of the largest barriers to commencement. Investors, who are likely more conscious of the future tax implications of liquidating their asset, will likely look to minimise their tax liabilities by shifting to the new-build market.
For owner-occupiers who are seeking long-term familial homes with minimal outlook to future capital gains implications, the Budget may reduce demand for existing stock, however, the extent to which this takes place will likely not be felt immediately.
While investor and owner-occupier demand may strengthen in the new build landscape, the ability to convert that demand into completed housing stock will remain dependent on the efficiency of large infrastructure projects to service those new homes and communities both in terms of transport connectivity and access to community assets.
For the Gold Coast, Tweed and Byron region, the message is clear: housing supply and new build demand have become the centrepiece of national housing policy. Developers capable of delivering well-located, feasible residential projects stand to benefit from a policy environment increasingly designed to reward the creation of new housing stock.
About CHP Group
CHP Group is a residential and commercial developer, with multiple projects in NSW. Visit chpgroup.com.au.
