Property Buzz


The recent budget announcement by the South Australian government to abolish stamp duty for first home buyers (FHBs) on new homes has raised concerns among brokers, who fear it may lead to an increase in house prices. The state’s 2024–25 budget, unveiled on Thursday (6 June), highlighted the removal of the stamp duty exemption threshold, previously set at $650,000 for newly built homes purchased by FHBs.

Nick Champion, the Minister for Housing and Urban Development, expressed that the move is aimed at addressing the housing undersupply crisis by boosting housing supply and assisting young individuals in entering the market. Champion stated, “The key to tackling the housing undersupply crisis is to increase supply at all levels of the market.”

However, some brokers are wary of the potential impacts of this policy change. Craig Parry, a senior finance broker and partner at Crown Money, described the abolition of stamp duty for FHBs as a welcome change in light of Adelaide’s median house price surpassing $900,000, making it difficult for FHBs to secure property. Nick Bartel, a broker with MoneyQuest, also acknowledged the benefit for FHBs but warned that the policy could inadvertently drive up house prices.

Steven Voroniansky, director and senior finance broker at Time2Refinance, shared a similar perspective, citing a recent example where a newly built home’s price increased by $150,000 overnight following the announcement. He noted his interest in “what the ripple effect will be” on house prices as a result of the policy introduction.

In addition to stamp duty abolition, the South Australian government announced significant housing measures in its budget, including an allocation of $843.6 million to build and upgrade 2,383 homes, with $567 million dedicated to redeveloping SA Housing Authority land in Seaton. Moreover, $135.8 million has been allocated over the next five years to upgrade and build 442 social homes, supported by the federal government’s Social Housing Accelerator Payment.

Following the budget announcement, brokers also shared their thoughts on what else could have supported clients in the property market. Parry suggested increasing the property price cap of the First Home Guarantee to align with Adelaide’s average house price, while Voroniansky agreed that a higher cap would benefit buyers. Bartel pointed out that merely increasing property price caps on government schemes could act as temporary solutions, pushing for more substantial changes to address housing affordability comprehensively.

The policy changes and budget allocations reflect the South Australian government’s efforts to stimulate housing supply and support FHBs. However, the potential for these measures to impact housing prices remains a topic of concern among industry professionals.

Previous post
Next post
Leave a Reply

Your email address will not be published. Required fields are marked *