Rising Stamp Duty Highlights Stimulated New South Wales Market
As New South Wales prepares for the busiest auction weekend in history, it has been found that October received the largest amount of stamp duty on record, which highlights the sheer amount of property being sold across the state.
In an article published on November 23 in the Sydney Morning Herald (SMH), it was said that New South Wales received a huge $356.8 million in stamp duty from property sales. This is the largest amount to be experienced since records began in 2005/6.
This is backed up by Treasurer Mike Baird’s November Economic Update, which states that the state is undergoing a massive increase in housing strength. Housing construction is up over the last year, which have been encouraged by government policies to stimulate residential numbers.
Furthermore, finance approvals have increased by 9.1 per cent over the last year, while approvals for new homes is up by 29.4 per cent over the same period. Finally, private residential housing approvals are nearing an annual rate of 52,000 – the highest since 2002 and 69.4 per cent higher than a year ago.
Currently, Sydney’s median price is resting at $722,718, which translates into a potential stamp duty charge of $28,016. The latest Australian Property Monitors auction results for last weekend (November 23) have highlighted an 80 per cent clearance for all homes sold over the period.
This works out to be 407 homes sold this weekend alone, and could indicate a great opportunity for any potential sellers to get onto the market and secure a great deal. With the buyer demand rising across the state, putting your home on the market could help you to earn a nice return.