- From 1 July 2027, negative gearing on established residential properties purchased after 12 May 2026 will be restricted, whilst new builds retain both negative gearing and the existing capital gains tax discount.
- Construction estimating firm Build Metric predicts these tax changes will shift investor demand towards new residential builds over the next 12 months, increasing the need for fast and accurate quoting from builders.
- Build Metric achieves 98% estimating accuracy across more than 1,500 completed estimates, with industry benchmarks typically allowing a variance of up to 5% on standard construction estimates.
- The firm has recently expanded into the New Zealand market, grown to 45 full-time staff across Australia and New Zealand, and formed a new partnership with a local electrical estimating software provider.
- Build Metric founder Luke Rose warns that inaccurate, low-cost estimates ultimately cost clients more through missed scope and incorrect quantities, emphasising that pricing accuracy is critical as investor activity increases.
Build Metric Predicts New Negative Gearing Rules Will Shift Investor Demand Toward New Builds
Melbourne, June 2026 — Build Metric, a construction estimating firm operating across Australia and New Zealand, says the new negative gearing and capital gains tax changes could shift property investment activity toward new residential construction over the next 12 months. From 1 July 2027, negative gearing — which allows property investors to offset rental losses against other income — will be restricted on established residential properties bought after 12 May 2026. New builds are exempt from this restriction and retain both negative gearing and the existing capital gains tax discount.
Build Metric provides estimating services to builders, contractors and construction businesses, and expects demand for fast, accurate new-build quoting to grow as investor activity shifts.
Luke Rose, founder of Build Metric, says the new-build exemption is the detail builders should be paying attention to. "Established property is losing the tax benefits new builds get to keep. That makes new construction a more attractive option for investors. Builders who can move quickly and price accurately are the ones who will pick up that demand."
Build Metric positions itself between the lowest-cost estimating providers and premium firms, delivering accurate estimates at a fair price. Industry benchmarks typically allow a variance of up to 5% on a standard construction estimate. Build Metric achieves a 98% accuracy across more than 1,500 completed estimates, including during high-demand periods when variation risk tends to increase.
Rose says the firm has seen a consistent pattern of clients who chose a discount provider on price, only to absorb the cost later through inaccurate quantities or missed scope. "An estimate is only useful if the numbers are right. A cheap estimate that misses scope or quantities costs more later, not less."
Build Metric continues to grow, recently entering the New Zealand market and reaching 45 full-time staff across Australia and New Zealand, alongside a new partnership with a local electrical estimating software provider to expand its service offering.
To get your next build estimated by Build Metric, reach out at [email protected] or 1300 819 112.
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Build Metric does not provide tax or financial advice. Builders and investors should seek independent advice on how the changes apply to their circumstances.
About us:
About Build Metric
Build Metric is a construction estimating firm providing estimating services to builders, contractors and construction businesses. With 45 full-time staff and operations across Australia and New Zealand, Build Metric combines estimating expertise with established systems to support clients through project delivery.
Contact details:
Build Metric
+61 1300 819 112
