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NSW property sector receives timely boost

By Cameron Micallef 04 May 2020 | 1 minute read

The NSW property market has received a timely boost, with the ban on public open homes and on-site auctions to be removed from next weekend, as well as stamp duty concessions.

Sydney

Due to cases of COVID-19 drastically falling, the government has announced that it will ease restrictions with the property sector.

It is welcome news for the industry, following severe falls in listings, as well as auction clearance rates falling to its lowest point in 15 years.

REINSW CEO Tim McKibbin said, “Large supermarkets, home improvement shops and public transport all have people congregating in an environment not dissimilar to what is proposed for the property services industry, so we welcome the relaxation of these restrictions.” 

The property industry is fully cognisant of its obligations to ensure social distancing, the use of sanitising procedures and the like to protect the community, Mr McKibbin said. 

“Accordingly, the property services industry acknowledges and embraces its obligation to follow the procedures and processes prescribed by government to protect the community.” 

“The government has clearly demonstrated that the health and safety of the community is its primary obligation. While discharging that obligation, the economy was put into hibernation.” 

The REINSW has also come out supporting the NSW Treasurer’s commitment to overhaul the taxation regime currently applied to the property industry. 

While there is no such thing as a good tax, it is universally accepted that a broad-based tax system has less impact on economic activity. 

Taxation should be a consequence of a transaction, not a consideration, the property group said. 

“The acquisition of goods and services subjected to the impost of the goods and services tax (GST) – a broad-based tax – rarely if ever influences the consumer’s purchasing decision. By contrast, transfer (stamp) duty is a very narrow-based tax and is a significant cost attaching to the acquisition of a property.” 

“For this reason, transfer duty is a consideration, not a consequence of the transaction. 

“Accordingly, we see people renovating their property rather than selling and buying a property that better responds to their current lifestyle,” Mr McKibbin concluded.

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your... Read more

NSW property sector receives timely boost
Sydney
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