Billions 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.
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