Scott Morrison scoffs at $100 million negative gearing claim, page-40

"if you get negative gearing on new properties but not on existing properties then investors will buy new properties. Then who will they sell them to? there will be no investors to buy them and the prices will drop.
So then investors wont buy new properties either. Its a simple process of value destruction."

You've hit the nail on the head.
The whole government negative gearing subsidy is a Ponzi bubble that has inflated house prices.
Those who are in on the Ponzi expect the government to protect their bubble by continuing the government subsidy. Take it away and the free market returns house prices to what they are really worth.

I will tell you who will buy the new and old houses.

The young people and people on low to mid incomes who cant afford their own home now, because the negative gearing subsidy has created an unsustainable Ponzi bubble.

Last ones in get caught. Tuff.