Property market feels the effects ahead of SMSF ban

The proposed government changes to restrict residential property purchases through self-managed super funds (SMSFs) could have significant negative effects on the property industry.

While the reforms are intended to help first-home buyers, industry participants warn they could reduce buyer activity and hurt businesses that rely on SMSF investors.

Buyer’s agencies may be particularly affected, with one industry figure claiming that up to 20% of property purchases involve SMSF strategies, potentially threatening the viability of some agencies if the changes proceed.

Property industry experts believe the proposed SMSF reforms will create short-term urgency but long-term challenges. They expect a rush of investors trying to buy residential property through SMSFs before the changes take effect, followed by reduced buyer activity.

Industry figures warn the reforms could hurt buyer’s agencies, limit retirement wealth-building options, reduce rental housing supply, and force investors to consider commercial or mixed-use property instead. They argue the government’s focus should be on increasing housing supply and cutting red tape rather than restricting SMSF property investment.