In January, Corelogic reported an 11.7 per cent decline in settled transactions in Melbourne, an 8.4 per cent fall in Sydney and a 9.6 per cent decline in Brisbane. This research suggests that there are market pressures resulting in people holding onto their homes for longer periods of time.
The strict regulation from banks around higher mortgage deposits and a tightening of lending criteria is likely attributing to the lower transactional numbers. However, as Corelogic pointed out in the Australian Financial Review last week, stamp duty is a big barrier to transacting property.
For a long time stamp duty has been under scrutiny, lauded by many within the property industry as a tax that significantly restricts the efficient turnover of housing. And, despite both the NSW and Victorian governments introducing concessions around stamp duty in 2017, the tax still seems to be a constraint for many Australians.
As we see more property listings come to market over the autumn period, we may start to see a higher level of transaction. It’s a trend many property professionals will no doubt continue to watch.