Investment from self-managed super funds plays a crucial role in making projects viable, developers say. Without that investment many projects may not go ahead.

The government has yielded to the Greens and agreed to ban SMSFs from borrowing to purchase residential properties and avoiding the CGT increase.

The sudden policy shift comes despite federal Labor declaring just last May that it had no intention of banning the super borrowing arrangement.

A ban on self-managed super funds borrowing money to buy housing has blindsided the sector, which says Labor should instead target "unscrupulous" operators spruiking property as…

Investment from self-managed super funds plays a crucial role in making projects viable, developers say. Without that investment many projects may not go ahead.

This ill-considered ban works against efforts to increase housing supply and affordability, and it has created uncertainty for those planning for retirement.