The Federal Government’s proposed changes to negative gearing and capital gains tax are expected to spark a significant shift in the new projects market.

At the centre of the changes is a deliberate policy decision to preserve negative gearing and depreciation benefits for newly constructed dwellings, while removing the entitlements for investors purchasing existing stock.

It creates a hard structural divide that has not existed in the Australian property market before and for Gold Coast developers and buyers in the new projects space, it changes the conversation.

What It Means for Developers

The flow of investor demand toward new builds creates genuine commercial momentum for well-positioned developers. Pre-sale enquiry is already strengthening and projects that can demonstrate quality, livability and long-term resale appeal will attract a deeper buyer pool than at any point in recent years.

The challenge is coming to market.

Construction costs continue to escalate and access to skilled trades remains critically constrained, particularly as major infrastructure projects ramp up ahead of the 2032 Olympic Games. Many proposed developments that appeared viable 12 months ago no longer stack up financially at current build costs and financing rates.

Projects that are not already well advanced or backed by well-capitalised developers face a difficult path to delivery.

The result will be less new supply entering the market, not more, which will place further upward pressure on pricing for the projects that do complete.

What It Means for Buyers

For buyers, full negative gearing, depreciation and deductible costs remain on the table for new builds, with the incentives making the numbers meaningful when choosing between new and established stock.

If the government gets it way and the tax changes are expedited through parliament, which it is aiming to do before the end of financial year, we will see the demand for quality off-the-plan product start to intensify, with pricing set to follow. Those who act now are doing so ahead of that curve.

Selectivity is key

Not all new projects are equal, and the best long-term outcomes belong to those who choose developments with strong owner-occupier appeal, generous proportions, premium finishes, landmark locations, and a developer track record to match.

These are the assets with genuine resale depth, regardless of how investor market conditions shift over time.

With investors set to form a greater share of the new project buyer pool, the question of who buys next becomes central to any purchase decision.

The most resilient assets will be those with a ready and waiting owner-occupier resale market, which means product attributes matter more than ever.

Efficient floor plans that use space intelligently, generous storage, high-quality finishes, access to solar, and protected view corridors are no longer simply desirable features.

They are the criteria that will define whether a property commands a premium or sits on the market when the time comes to sell.

According to Kollosche Managing Partner Shane Smollen: “The tax settings now clearly favour new property, but the fundamentals of location, quality and the right developer have never been more important.

“The buyers who will look back on this period as a defining opportunity are the ones who bought well in the right buildings and moved before the broader market caught up.”

To explore new project opportunities on the Gold Coast, contact the Kollosche New Projects team or click here.