Calls for the State Government to review stamp duty costs were renewed as the Australian Bureau of Statistics on Thursday said the number of South Australian housing approvals dropped in November.
The data stated the number of homes approved rose 0.2% across Australia, but the figures fell by 1.1% in the region.
The Property Council of Australia SA executive director Daniel Gannon went further by arguing that South Australia’s property taxation system was a “disease on economic growth” as it discourages investors from building.
“Abolishing stamp duty is critical to encouraging greater productivity and job creation in South Australia’s economy, particularly as the rate of overall home ownership is in slow decline,” Gannon said.
He added that stamp duty costs were stopping older homeowners from downsizing from the family home.
This sentiment was echoed by Real Estate Institute of South Australia chief executive Greg Troughton. “Stamp duty definitely affects dwelling approval rates, the holding costs of land are also a factor and, particularly with the amount of publicity that the emergency services levy has had, it may well be putting all of those factors together and having a dampening effect,” he said.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan