The cost of stamp duty on purchases is increasing. The average stamp duty cost on a property purchased inNew South Walesin 2012 was $20,134. This is an increase of 5o per cent when compared with the average cost only five years ago. According to the Australian Bureau of Statistics (ABS),New South Wales’ median house price was $605,000 in September 2012 - only 22 per cent higher than the June 2006 median, which was $495,000.
The Westpac Melbourne Institute Index of Consumer Sentiment reported an increase in confidence by 5.2 per cent in November 2012. ForNew South Wales, sentiment reportedly rose 14.2 per cent. Sydneysiders are value conscious and many local buyers will wait for evidence of a trough in the interest rate cycle before market interest return to full capacity.
ABS Building Approvals show the trend estimate for the total number of dwelling units approved in New South Wales rose 0.6 per cent in November – a rise for the tenth consecutive month. The trend estimate for the number of private sector houses rose 1.0 per cent in November for the ninth consecutive month. These results appear in line with state government new dwelling objectives.
The Real Estate Institute of New South Wales has advised that vacancy rates are again tightening, particularly within the inner suburbs of Sydney. Similarly, middle and outer suburbs also tightened over the September quarter. This situation is unlikely to improve given the lack of housing stock for rent and new housing stock limitations.
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Chris Lackey, State Manager (NSW)
WBP Property Group