






{"id":13771,"date":"2021-05-18T11:08:36","date_gmt":"2021-05-18T04:08:36","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=12360"},"modified":"2021-06-04T16:12:54","modified_gmt":"2021-06-04T09:12:54","slug":"victorias-stamp-duty-changes-will-have-a-ripple-effect-on-the-whole-market","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/victorias-stamp-duty-changes-will-have-a-ripple-effect-on-the-whole-market\/","title":{"rendered":"Victoria&#8217;s stamp duty changes to have a ripple effect on Australian market"},"content":{"rendered":"<p><span data-contrast=\"auto\">The hike in stamp duty is likely\u00a0to have the effect of pushing people into a cheaper property\u00a0as they\u2019re squeezed out of the top\u00a0end\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_12361\" aria-describedby=\"caption-attachment-12361\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-12361 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/05\/shutterstock_517080571.jpg\" alt=\"\" width=\"1000\" height=\"750\" \/><figcaption id=\"caption-attachment-12361\" class=\"wp-caption-text\">This effect may be received particularly in Melbourne\u2019s suburbs with AUD2 million median house prices, accounting for more than nine inner-city suburbs. Source: GregBrave\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">In Australia, the Victorian government\u2019s proposal to increase stamp duty on properties on sale for more than AUD2 million is likely to create a \u201cripple effect\u201d on the property market, as buyers will refrain from purchasing higher-priced properties, reported <a href=\"https:\/\/www.domain.com.au\/news\/victorian-stamp-duty-changes-to-affect-whole-market-not-just-2m-sales-economists-1055294\/\" target=\"_blank\" rel=\"noopener\">Domain<\/a>. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The plan has concerned the real estate and construction sectors,\u00a0describing the one percent increase in stamp duty as \u201ca tax on families, jobs, and property construction.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Shane Oliver, AMP Capital chief economist, said\u00a0<\/span><span data-contrast=\"auto\">\u201cI guess there isn\u2019t a lot of sympathy for high-end property buyers, but it\u2019s fallacious to think you\u2019re only going to be impacting the top end. It does affect the whole property market.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The extra stamp duty is likely going to push people into cheaper properties, buying one for AUD1.8 million if they can\u2019t afford an AUD2million home.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cIt\u2019s a ripple effect and makes these \u2018cheaper properties\u2019 more expensive as people are squeezed out of the top end,\u201d Oliver said. \u201cThe impact to an AUD500,000 home may be minor but it\u2019s still likely to have a big impact on properties worth AUD1 million or even AUD800,000.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This effect may be received particularly in Melbourne\u2019s suburbs with AUD2 million median house prices, accounting for more than nine inner-city suburbs.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While Victoria looks to increase its stamp duty charges, the New South Wales government had shown evident efforts to move away from the property transaction charge and a land tax instead, said Matthew Hassan, Westpac senior economist.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Hassan added, \u201cEveryone is saying stamp duty is one of the most inefficient taxes we have in Australia \u2014 it\u2019s an impediment to the market \u2014 we really should be looking at moving away from state government dependence on stamp duty.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/bank-of-mongolia-makes-mortgage-more-affordable-through-6-mortgage-loans\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Bank of Mongolia makes mortgage more affordable through 6% loans<\/strong><\/a><\/p>\n<p><span data-contrast=\"auto\">The extra taxes are perceived by the Victorian government as a strategy to lift the state out of COVID-19 related debt,\u00a0in part due to\u00a0months\u00a0of\u00a0lockdowns to stop the spread of the coronavirus.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The local property market was stagnant at the time, but Melbourne\u2019s house prices have boomed since fully operating, with low-interest rates driving the recovery. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Nevertheless, for the first time in 18 years, the Real\u00a0<\/span><span data-contrast=\"auto\">Estate Institute of Victoria, Property Council of Australia, Urban Development Institute of Australia, Housing Industry Association, and Master Builders Victoria had come together to ask the government for more consultation over the hike in stamp duty.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The hike in stamp duty is likely\u00a0to have the effect of pushing people into a cheaper property\u00a0as they\u2019re squeezed out of the top\u00a0end\u00a0\u00a0<\/p>\n","protected":false},"author":12,"featured_media":19606,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[149,272,1301,1355],"class_list":["post-13771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-australia","tag-melbourne","tag-price-hike","tag-stamp-duty","news_country-australia","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Victoria&#039;s stamp duty changes to have a ripple effect on Australian market | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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