REIA has long advocated for the removal of stamp duty, with our industry seeing first-hand the impact this tax has on the real estate market.
We know that removing stamp duty would improve utilisation of housing stock aincreasing market turnover.
In 2008, up to 4.5% of all residential properties were available for sale at any one point in the market. Today the percentage available is below 2.5%. All cities have recorded declines.
The largest declines in liquidity have been those cities which have the highest rates of stamp duty such as Sydney and Melbourne.
Less liquidity means fewer first home buyers and fewer investors. Those who wish to list and move, or buy are turned off by the major costs associated, reducing the available business for real estate agencies.