Softer auction rates are a sign tax changes in the federal budget are making things easier for first home buyers, the housing minister says, as Labor weathered another day of criticism from investors and entrepreneurs.
Auction clearance rates held below 60 per cent nationally for a second straight weekend following the budget, according to property data firm Cotality.
Housing Minister Clare O'Neil said she was happy with the results so far.
"We want a level playing field between first home buyers and investors in the housing market and that's what we've seen in the past two weekends," she told the ABC on Monday.
Treasury modelling estimated that abolishing negative gearing for established properties and replacing the 50 per cent capital gains tax discount with an indexation-based system would result in home prices growing two per cent slower compared to no change.
