More new buyers in the market but more needs to be done on Stamp Duty

HIA welcomes the news that stamp duty concessions in NSW are helping more first home buyers in western Sydney, but HIA would like to see more being done to tackle the problem stamp duty and rising median house prices NSW Regional Executive Director David Bare said.

“NSW eliminated stamp duty for first home buyers purchasing a property valued up to $650,000 and provided savings for homes valued up to $800,000, Mr Bare said. “NSW Government figures suggest more than 19,000 people accessed stamp duty concessions since the more generous regime was introduced in July.

“Obviously any action taken by the government to relieve home buyers of the huge burden of stamp duty is welcomed.

“The HIA for a long time has supported schemes in other states such as ACT (Land Rent) and in WA (Key start) and in Victoria (Vichomes) that seek to tackle the problem of stamp duty.

“However the current brackets of discounts for purchases up to $800,000 is not enough to help many buyers get on top of Sydney’s high median house prices.

“If we look at CoreLogic stats from 2018, since 2002 median dwelling prices in NSW have risen by 118 percent and the typical stamp duty bill has risen by 174 percent. Stamp duty has grown faster than house prices over that period.

“HIA is advocating for an elimination of stamp duty across a larger bracket of prices.

“Having more first home buyers in the market is a good sign because they have been out of the market for so long.

“HIA wants to see a more structured application of the reduction in stamp duty will have a better effect of increasing homebuyers.

Source: HIA