Residential real estate affordability in Queensland is under threat as state taxes continue to take money out of the property sector, the REIQ has said.
The Queensland state government increased its stamp duty revenue by $273 million in the last financial year, according to ABS data.
The stamp duty conveyances in the 2016 financial year was $3.005 billion, and in the 2017 financial year, that rose to $3.278 billion.
The increase means that 25 per cent of the total taxation revenue for the state is coming from stamp duty on conveyances.
This taxation added to land tax and other taxes on property equate to 38 per cent of total taxation revenue, which is too much, according to REIQ CEO Antonia Mercorella.
“We have good affordability in our residential market and great affordability in our commercial market, but rising stamp duty costs are threatening that affordability,” the CEO said.
Ms Mercorella said that stamp duty added costs on top of the sales price, which could affect many home buyers.
“An upgrader moving from a $500,000 home to a $750,000 home would be forced to pay an estimated $20,000 in stamp duty, on top of the cost of their new home, along with various costs associated with buying and selling property,” the CEO said.
Many people are turned off participating in the property marketing because of the high extra costs of stamp duty, Ms Mercorella added.
“In residential real estate, hefty stamp duty costs serve to stifle housing mobility. Upgraders and downsizers put off the next move because of the onerous stamp duty they will have to pay when they move,” Ms Mercorella said.
Ms Mercorella added that the REIQ was in favour of removing stamp duty to allow the Queensland market to remain affordable.
The abolition of stamp duty would result in a dramatic boost in transactions and would provide greater flexibility for aspiring home owners.
“The reality is simply that stamp duty is threatening our affordability,” Ms Mercorella said.
“The REIQ has long advocated for the abolition of stamp duty. It does the property sector no favours and the state government is now in danger of killing off the golden goose.”