Morgan Stanley's Australia Head warns of weakening property market.

The CEO of Morgan Stanley Australia has stated that the current consumer confidence is already low, and adjustments to tax policies for property investors may trigger a downturn in the housing market. Richard Wagner said in an interview on Wednesday, "After the federal budget was announced, several indicators such as auction clearance rates have shown worrying signs, indicating that some segments of the property market will face downward pressure." Last month, the federal budget introduced several tax changes: tightening the rules for tax deductions on property investment losses and mortgage interest before tax, and cancelling capital gains tax exemptions. This move aims to reduce the barriers to home ownership and assist first-time home buyers - Australia's housing affordability is already among the lowest globally. Wagner stated that property investors have already been impacted. In the residential market, investors make up 40% of buyers, which will inevitably affect house prices. He added that the effects of the budget will gradually become evident over the next six months.