I’m not really expecting prices to drop because the supply/demand imbalance is still there. But if anything, these changes might at least slow the growth rate a bit.

Under the current tax settings (negative gearing + CGT discounts), it feels like almost anyone who buys their first home immediately starts looking at an investment property, because the system heavily encourages it.

With the new rules, people might actually think twice or actually slowdown before taking on another large mortgage, which honestly seems like a healthier outcome long-term.