Treasurer Josh Frydenberg predicts Bill Shorten will walk away from a suite of controversial housing tax reforms, following predictions prices will collapse this year.

Mr Frydenberg said Labor's proposals to restrict some negative gearing concessions and to lift capital gains tax by 50 per cent will hit the market at the “worst possible time”.

Treasurer Josh Frydenberg predicts Labor will abandon its negative gearing changes. Credit:Alex Ellinghausen

“Labor came up with this policy at a very different time in the housing market when prices were heading up, and now they’re going down their policy is ill-suited to the times,” Mr Frydenberg said.

“It it might not be long before Bill Shorten drops it given Chris Bowen has got him in this mess.”