The article said: "In April 2000, the average First Home Buyer's loan was $134,000. By January 2011, this had all but doubled to $266,700. We can thank the halving of capital gains tax, the first home owners grant (the seller's subsidy) and negative gearing for this abrupt price distortion."
Completely wrong. Owner occupied houses have never been subject to capital gains and the negative gearing regime has not changed at all

Local and state governments do not have the power to force private property owners to up zone and build affordable housing withing state regional plans. Others who want to deliver affordable housing as a mix inline with the desired policy outcomes are excluded by these regional plans.

Siltstone: NOWHERE does the article state or imply that owner-occupied homes have ever been subject to CGT or that the negative gearing rules were changed during the relevant period (2000 to 2011).

However, the discounting of CGT (for investors!) was introduced just before that period, and its effect was to make the existing negative gearing rules more attractive (to investors!). Negatively geared investors are sacrificing current income in pursuit of capital gains. That strategy is made more attractive if capital gains are taxed less than current income.

This story is a disjointed ramble filled with political and social propaganda and sprinkled with the politics of envy. Yes let's not buy any real estate and it will all go away! What garbage. Are we all going to live under a rock?
And never let facts get in the way of a good story either. Your stats suggesting that 46,000 new listings miraculously popped up in February is not correct at all.
The residential property market is a supply and demand market currently going through a period of high supply and lowered demand. Great for buyers

DPerth - 46,000: that figure was never mentioned. SQM Research, who published the 46 PER CENT extra stock on market, is a well respected body that is quoted by dozens of national media outlets.

You can't surely read an article like this and say that the state of entrepreneurial incentive is alive and well? Is buying and selling real estate, which brought the global economy to its knees, the highpoint of capitalism?

If you believe so then you really should dedicate some time to read Adam Smith's Wealth of Nations.

Time honored models have been put to government on housing and the mix of affordable housing inc social, But then when private enterprise acts on the policy docs doors close.