Jun 23, 2026 – 11.54amBillions have been wiped off the valuation of REA Group by stockbrokers who have lowered their share price targets for the real estate listings giant as a direct result of tax changes in the recent federal budget, which they predict will lead to a slide in properties coming to market.The price of homes in Sydney and Melbourne are already falling and those cities’ auction clearance rates have plunged to their lowest levels in almost a decade, after last month’s budget targeted property investors with proposed changes to capital gains and negative gearing.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Brokers cut REA valuation by billions over property slowdown fears
The lock-in effect of investors and owners staying put could slash the number of properties coming to market in the next three years, triggering REA downgrades.
TL;DRAI
Stockbrokers slashed REA Group's valuation amid Australia's budget curbs on capital gains and negative gearing for property investors. Auction clearance rates in Sydney and Melbourne hit decade-lows as prices fall, shrinking the listings volume REA depends on.
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