The South Australian government recently announced a significant real estate policy change: the complete cancellation of stamp duty for first home buyers purchasing or building new homes. This move aims to reduce housing costs and help more Australians achieve their dream of homeownership. South Australian Premier Peter Malinauskas, in announcing this news, pointed out that Australia is facing a severe housing crisis, with previous governments failing to effectively address the demand for new housing construction.
This new policy will take effect on June 6 as part of the 2024-25 national budget. According to government plans, the cancellation of stamp duty and the provision of subsidies for first-time homebuyers will cost approximately AUD 30 million, aiming to encourage more young families and individuals to enter the housing market. Specifically, South Australia will waive stamp duty for first home buyers purchasing new residential properties, while those buying homes priced below AUD 750,000 will receive over AUD 50,000 in subsidies, including a one-time cash grant of AUD 15,000.
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Mr. Malinauskas emphasized that the implementation of this policy not only continues previous budget measures but will also further drive the development of South Australia's housing market. He stated, 'Now, we hope that everyone who wants to own their own home can enjoy the benefits of this tax relief policy. Each additional occupant of a new home means one less competitor or renter in the existing housing market.'
However, contrasting sharply with South Australia's generous housing policy, recent leasing regulations proposed by the Victorian government have sparked strong controversy. The new regulations require landlords to install additional ceiling insulation, draft-proofing, energy-efficient hot water systems, and cooling equipment in residential units, with estimated renovation costs per property around AUD 5,000. This proposal has immediately met fierce opposition from landlords and real estate experts, who argue that such regulations will directly increase landlords' financial burdens and could ultimately lead to rising rental costs, exacerbating tensions in the rental market.
Apart from policy changes, the Australian real estate market has shown significant divergence in recent years. According to PropTrack's April house price index report, residential prices have slightly risen nationwide since February, particularly in capital cities and some smaller state capitals like Perth, Adelaide, and Brisbane, with increases reaching 18.62%, 13.47%, and 12.9% respectively.
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However, Melbourne's apartment market has experienced a starkly different situation. Over the past five years, apartment prices in inner-city and northern areas of Melbourne have generally declined, with some areas experiencing drops of over 30%. This substantial price decline is mainly attributed to instability in the leasing market and low investor confidence, making these areas a focus for home buyers and investors.
In contrast to the apartment market downturn, the detached house market in parts of Melbourne remains relatively stable. While there have been minor declines in some areas, overall, the detached house market has not experienced significant price fluctuations like the apartment market."
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