Jun 5, 2026 – 12.32pmMorgan Stanley has cut its share price targets for the major Australian banks after declaring the property tax changes announced in the federal budget will end the country’s 30-year housing super cycle and unleash a wave of earnings downgrades across the sector.The broker warned that government changes to the favourable tax treatment for residential property investment, and the Reserve Bank of Australia’s three back-to-back interest rate rises, could trigger a 10 per cent fall in national house prices by the end of 2027, representing the largest correction in the past 40 years.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles