The announcement by the Queensland Government to increase the stamp duty concession threshold for first home buyers to $700,000 has been welcomed by the Real Estate Institute of Queensland.
REIQ CEO Antonia Mercorella said this was a long-held advocacy and policy position of the REIQ to increase stamp duty concession thresholds for first homeowners.
“It is an easy and logical first step to address the home ownership emergency in this state and we congratulate the Government on listening to our calls for change,” she said.
“With Queensland having the lowest rates of home ownership of any state and declining first home buyer activity, a stamp duty overhaul is critically important.
“The current $500,000 threshold is extremely outdated and has rendered the stamp duty concession virtually redundant for first time buyers given material shifts in property prices.
“This move will see first homeowner concessions more closely reflecting market conditions.”
Ms Mercorella said that although the new $700,000 threshold is welcomed by the REIQ and is a marked improvement, it is still short of where it should be set and still leaves Queensland behind Tasmania.
In particular parts of the market, such as Greater Brisbane, the threshold should set higher to better reflect median prices.
“Over the last four years, about 26,000 per annum on average Queenslanders have purchased their first home. The Treasurer has announced predictions this figure will increase by 10,000 each year following this reform,” Ms Mercorella said.
“It is pleasing to see the announcement of a tangible target on a housing related policy and we look forward to seeing regular and transparent reporting in the future.
“Following years of record stamp duty windfalls, it is pleasing to see the government doing more to assist first homeowners.
“This reform will not only help first home buyers. It will enable thousands of Queenslanders to transition from renting to buying easing pressure on our critically tight rental market.”
Ms Mercorella said some further enhancements that could be made to this policy include allowing recipients of the concession to rent out a room in the property provided they maintain the dwelling as a primary place of residence.
In addition, the REIQ would like to see an extension of this incentive offered to those who have been out of home ownership for a period of at least five years due to change in personal circumstances.
“We know that home ownership locks in intergenerational wealth and reforms of this nature have an enduring impact our community today and into the future,” she said.
Ms Mercorella did however raise concerns in relation to the increase in stamp duty for overseas investors.
“It seems counterintuitive that concessions are on offer for large overseas multinationals to take profits out of Queensland in the form of built to rent, but those looking to invest in other products that provide supply are being punished. We believe it should be a level playing field for all.”
