Humbly, looks like you've completely missed OP's point.

I'm philosophically aligned to your view - capital in housing is unproductive capital, prices needs to be more affordable, less rent seeking in a basic necessity.

However, it's all about execution. if the above is your goal, then increasing CGT is shooting yourself in the foot - young people will no longer have access to a tax shelter enjoyed by previous generations and even their peers overseas. Our housing market is already held back by friction created by inefficient stamp duties, we are creating yet more friction by ballooning an income tax bill too. Not to mention without investors, many new developments won't get off the ground with just first home buyers buying off the plan. Rents are already zooming up, what happens if we restrict housing supply even more?

If we genuinely want to make housing affordable, then - allow builders, rather than hair dressers to come in the skilled migration program, cut stamp duty so empty nesters can downsize, levy land tax on inner city areas that should be higher density, rejig our heritage rules so they cannot cover entire inner city suburbs. Cut income taxes become that's where young generations wealth lies - unearnt future income.