Commencing 1st July we’ll see stamp duty axed for first home buyers spending less than $600k; part of the Government’s efforts to help more Victorians break into the housing market. For someone spending $600k on a new home, this will mean a saving of around $15k.
Announced in March, this change has already had a tangible impact on the market with a large drop in the number of homes selling below $600k recently. Unsurprisingly, people looking to buy around this level are holding off to take advantage of the stamp duty saving, and many vendors in this price bracket are waiting to list their homes.
I expect that we’ll see a burst of activity amongst this group from the start of next month, particularly in the middle and outer rings. Closer to town, my prediction is a strong few quarters for apartment and townhouse sales as many buyers make the trade-off between land and proximity to the city.
Historically, initiatives to support first home buyers – whether cash grants or concessions – have been shown to drive an overall increase in sale prices, where buyers look to spend their ‘saving’ by adding it to the purchase price they’re prepared to pay. I’ll be watching with interest to see how the market reacts over the next few months.
The broader market shows no signs of slowing and our offices are as busy as ever with new listings.
Please get in touch with your local office if you’d like to know what your property’s worth in today’s market, or if you’d like to be kept up to date with new listings in the area.