Property locusts swarm WA Government

With Perth dwelling values having crashed by more than 21%:

Property lobbies have met with the Western Australian Government to demand a housing stimulus package. From The West Australian:

Major property industry players met senior McGowan Government ministers yesterday to plead their case for a sweeping stimulus package aimed at breathing life into the WA’s stagnant housing market.

Removing stamp duty on the purchase of apartments, raising the stamp duty threshold to $550,000 for first-homebuyers and bringing in concessions for downsizing seniors headline the proposal… Other measures… included slashing the foreign buyers surcharge from 7 to 4 per cent and reinstating Perth’s regional migration status in a bid to supercharge population growth.

Backed by the Housing Industry Association, Master Builders Association, Property Council of Australia, Real Estate Institute of WA and Urban Development Institute of Australia, the package also includes boosting the maximum price of homes purchased through Government-lender Keystart from $480,000 to $550,000.

You can almost smell the panic from the East Coast of Australia.

It also shows why Australian housing is not really a “market”, but rather a quango between the property industry and the government.

All of these measures have nothing to do with improving ‘affordability’ and home ownership. Rather, they are a shameless attempt to stimulate demand, raise dwelling prices and transaction volumes, to line the pockets of the industry.

Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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