House prices across the nation's capital cities have recorded their slowest rate of growth in the June quarter since December 2015.
Corelogic's latest housing survey show prices across the nation's eight capital cities grew by just 0.8 per cent in the June quarter - the slowest quarterly pace since December 2015.
The treasurer said the government's May budget housing measures and actions taken by the banking regulator would ensure a "safe landing" in the Sydney and Melbourne property markets.
"You need to use the scalpel, not Labor's chainsaw of where they want to abolish negative gearing," Mr Morrison told reporters in Sydney on Monday.
"That would have driven the market toward a hard landing and we know what that would mean for consumer confidence in the economy more broadly."
Other figures showed home building approvals fell 5.6 per cent in May to be nearly 20 per cent down over the year.
Commonwealth Bank economist Gareth Aird said the report reaffirmed his view residential construction will be a drag on economic activity from the second half of 2017 having supported growth over the past few years.
Cooling house prices will be one less worry for the Reserve Bank when it holds its monthly board meeting on Tuesday to discuss interest rates.
However, economists expect the central bank will eventually have to follow the global trend to raising interest rates.
Former Reserve Bank board member, John Edwards, said last week the official cash rate could rise eight times over the next two years, based on current economic forecasts.
But other economists and financial market participants expect future increases will be much more restrained.
Timo Henckel, a lecturer at the Australian National University's Research School of Economics, said the continued tightening of monetary policy in the United States would make it more likely that Australian interest rates would need to rise in the medium to long term.
In the meantime, he expects the cash rate to remain at an all-time low of 1.5 per cent faced with a mixed economic outlook.
Annual economic growth has proved sluggish and inflation remains well contained but unemployment has unexpectedly fallen to 5.5 per cent.
In further positive news on the labour market, job advertisements rose by a solid 2.7 per cent in June to be 10.5 per cent up on the year.
"The ongoing strength of the labour market allows the RBA to effectively disregard the weakness of GDP growth in the first half of this year," ANZ head of Australian economics David Plank said,
