New negative gearing rules make Showground Pavilions a sharper move for investors

AT A GLANCE: 

• Developer & Builder: Deicorp
• Architect: Turner
• Address: 3 Andalusian Way, Castle Hill, NSW 2154
• No. of Residences: 873 residences across five buildings
• Estimated Completion Date: Late 2027

A significant tax reform now sits in the middle of any conversation about where to invest next. From 1 July 2027, negative gearing will be wound back for established homes purchased after 12 May 2026, but new builds keep the benefit in full.

That shift puts developments like Showground Pavilions, Deicorp’s new Castle Hill community, in a stronger position for anyone weighing up new against existing stock.

What’s changing, and why it favours new builds

Investors who buy an established residential property after Budget night will no longer be able to offset rental losses against their salary or wages. Instead, those losses carry forward against future rental income or a capital gain when the property sells. Anyone who already owns an investment property, or who exchanges before the cut-off, keeps the current rules.

New builds sit outside these changes entirely. Investors buying a new home – an apartment or townhouse at Showground Pavilions, for example – retain full negative gearing and the existing 50% capital gains tax discount, regardless of when they buy. It’s one of the clearer tax incentives the market has seen in some time to choose new over established.

Momentum building at Showground Pavilions

Construction is now underway at Showground Pavilions by builder-developer Deicorp, with a wide range of one-, two-, and three-bedroom apartments and garden townhomes available. The first two buildings released have sold well, and buyers are encouraged to get in quick.

Early demand has come largely from owner-occupiers drawn to the location. It’s understandable, given the development sits a two-minute walk from Hills Showground Metro and directly beside Hills Showground Village, Deicorp’s neighbouring retail and lifestyle precinct.

With new-build tax settings now more favourable for investors too, that buyer mix looks set to widen.

A precinct still growing around it

Hills Showground Village brings more than 30 specialty stores, cafés, a supermarket, gym, and restaurants to Showground Pavilions’ doorstep, along with a public plaza – the kind of everyday convenience that doesn’t ask residents to leave the neighbourhood.

One metro stop away, Castle Towers is undergoing a major expansion that will make it the state’s largest shopping complex, adding a cinema megaplex and an expanded fashion and lifestyle retail offer. For residents, a fast-growing hub of shopping, dining, and entertainment stays within easy reach on foot, by metro, or a short drive.

“Buyers see this as the best position in Showground Village, the most connected and convenient spot,” said David Milton, partner at SRM Residential.

Why it matters now

Between the location, the pace of sales, and a tax setting that now runs in new builds’ favour, Showground Pavilions is shaping up as an idyllic choice for investors and owner-occupiers alike.

One-, two-, and three-bedroom residences are selling, priced from $715,000 for a one-bedroom home with one bath and one car parking space.

Click here to learn more or to enquire about Showground Pavilions.