Rising stamp duty is killing property market liquidity

A new report by SQM Research prepared for the Real Estate Institute of Australia has found the percentage of Australian homes available to purchase has fallen from 4.5% in 2008 to just 2.5% today, with figures considerably lower in the major capitals.

This fall in liquidity has been driven by “bracket creep” in stamp duty, which has risen from 4.2% of a homes price, up from 3.2% in 2011. As expected, Sydney and Melbourne carry the largest stamp duty burdens:

SQM Research has found that nationally, duties as a percentage of median dwelling prices has risen to 4.2% in the March quarter of 2021, up from 3.2% nine years earlier. Stamp duties as a percentage of median property prices have jumped in most capital cities over the nine years between the March quarter of 2011 and March 2021 because of rising property prices.

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