- Prices have eased, suggests REINSW CEO
- Expects clearance rate to remain around 80%
- Has reiterated calls for a Property Services Commissioner
In his weekly address, the CEO of the Real Estate Institute of New South Wales (REINSW), Tim McKibbin, has emphasised that coming into winter, prices will continue to ease although suggests a rush during spring may occur.
Either way, the NSW Government is expected to enjoy a growing pool of stamp duty revenue for some time.
“As expected, the intense start to the year in terms of transactions and prices has naturally begun to ease,” said Mr McKibbin.
“As winter approaches, we see the market settling into more sustainable long-term growth, with prevailing demand robust and supply still constrained, to keep prices buoyant.”
He adds that many vendors have reacted slowly when taking advantage of the current market, meaning some are preparing for a spring listing, although he suggests it is not clear whether or not this strategy will pay off.
“Listing a home for sale now potentially means getting ahead of the spring rush and, while growth in values may be easing, it is still apparent,” he said.
“Clearance rates should remain around the 80 per cent mark this week, down slightly from earlier in the year, but still very credible. Appropriately priced properties will continue to sell.”
Tim McKibbin, REINSW CEO
The government’s duty
Mr McKibbin highlighted the fact that in April, the NSW Government enjoyed $870 million in transfer duty revenue. Cumulatively, he said the revenue collected this financial year to date exceeds that of the entire 2019-20 financial year.
“There may be some heat coming out of the market but the importance of property to Government and to the economy has again been underlined by the most recent stamp duty numbers.”
He used this large pool of revenue to justify his calls for reform, including establishing a Commissioner dedicated to property and real estate.
“With so much at stake to an industry of unmatched social and economic importance, REINSW will continue to make the case for reform,” he said.
“The Bill to establish a dedicated and industry-experienced Commissioner for Property Services was passed by the Upper House but the Government has indicated it will block the Bill in the Lower House.
“No reason why has been offered, so we’re mobilising the industry to pressure MPs to carry this important reform forward.”
