STATES BOLSTERING COFFERS AT EXPENSE OF HOUSING AFFORDABILITY

Stamp duty has become the antiquated blight of the Australian housing sector as prices soar and governments continue to penalise home buyers with higher taxes which is leading to a reduced number of properties on the market.
Real Estate Institute of Australia (REIA) and SQM Research have today released a market analysis, Stamp duty: The relationship to Australian housing affordability and supply which shows that listings have plummeted across the country as housing prices and taxes on sales skyrocket.
According to the report, total national property listings have been steadily falling over the past year to currently sit at just over 200,000 properties – a record low on SQM’s numbers.
By way of comparison, between 2011 and 2019, a period that recorded two upturns and one down turn, national available listings ranged between 380,000 to 300,000 dwellings.
“As a result, market liquidity has nearly halved. 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%,” the report found.
REIA President, Adrian Kelly said stamp duty remains a prohibitive tax for all buyers, adding tens of thousands of dollars to the purchase of a home – for empty nesters, paying tens of thousands of dollars on a home they may only need for five years means less properties will be placed on the market.
“Stamp duties as a percentage of average national earnings have jumped over the past decade to 34.3% from 25.1% recorded back in 2012, up almost one third. In Sydney and Melbourne, stamp duties alone can represent nearly half the average annual income,” Mr Kelly said.