Home > Uncategorized > Market Update | 22 & 23 May 2021

Market Update | 22 & 23 May 2021

We enjoyed a much more pleasant weekend weather-wise, on a busy auction Saturday which yielded some mixed results. The REIV recorded a clearance rate of 81 per cent, with most properties that sold under the hammer attracting 2-3 bidders each.

The Victorian government’s planned stamp duty and land tax increases in the 2021-22 state budget continues to draw debate, with the REIV determined to work with the government, the opposition and cross-bench to see positive change.

REIV CEO, Gil King, said that “this ill-considered announcement shows a fundamental misunderstanding of the real estate market, and the contribution it makes to the economy including its influence on Victoria’s economic recovery post-COVID”.The Victorian government announced that those buying a home for more than $2 million across the state would pay more stamp duty – with a premium duty rate of 6.5 per cent being introduced. The rates will jump from the usual 5.5 per cent on 1 July 2021.

On the flipside, an economist from the Grattan Institute has suggested that the property tax hikes could actually boost economic growth and put an end to development-related corruption. Mr Brendan Coates said, “Mum and Dad investors made up most of the landlords across the country and owned properties worth way less than $1.8 million, so not many investors would be affected by the new land tax”.

Success. It’s a Fletchers thing.

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