Homebuyers win big with Queensland stamp duty concessions reinstated from July 1

HOMEBUYERS are set to save up to $7000 in stamp duty from July 1 after the reinstatement of concessions.

HOMEBUYERS are set to save up to $7000 in stamp duty from July 1 after the reinstatement of concessions by the Queensland Government.

The Treasury (Cost of Living) and Other Legislation Amendment Bill 2012 was passed by parliament this week which reinstated the Principal Place of Residence (PPR) stamp duty concession.

The concessions were removed last year for buyers other than first home buyers.

Mandatory sustainability declaration forms, introduced in 2010, will also be scrapped from the selling process.

Real estate agents in the Greater Brisbane region are predicting a spike in activity from July 1, but say the market may be slow leading up to then.

LJ Hooker Sunnybank Hills principal Peter Crowther said the market had already been affected by people holding out for the expected reinstatement of concessions and this would be likely to continue in the next 10 days.

Auctioneer Jason Andrew is blaming forthcoming stamp duty changes for a slow-down in his group's auction clearance rates.

"The reality it is it will help the vendors as well, as prices will probably increase after July 1 because of increased competition for their properties,'' Mr Crowther said.

"In the longer term it is a good thing as far as Queensland is concerned. It makes it a more attractive place as far as interstate migration is concerned. We have become an expensive option as far as stamp duties and other taxes are concerned.''

RE/MAX Property Centre sales agent Liza McKilliam said she hoped the level of activity in the market would increase after July 1.

"It has been particularly slow during June, hoping come July 1 it will improve, then into September and the warmer months, it will pick up again,'' she said.

Harcourts Pinnacle managing director Johnny Lin said the stamp duty changes would help stimulate the economy and it was a huge plus for the industry.

"I feel that between the savings as well as the interest rate drop, it's definitely stimulating the industry and buyers are coming back into force,'' Mr Lin said.

"My open homes used to be one or two groups through, now we're getting five to 10 groups through and most people are actually shortlisting properties to purchase.

"No one is prepared to put a contract on yet until July 1.''

Mr Lin said this month he had predominantly sold to first home buyers because they were not required to pay stamp duty.

"First home buyers are in a position to negotiate without any competition (in June),'' he said.

Real Estate Institute of Queensland CEO Anton Kardash said both policies would be warmly welcomed by everyone involved in the real estate profession.

"The PPR stamp duty concession was removed at a very inopportune time last year when the Queensland economy was still struggling to recover from our summer of natural disasters,'' he said.

"Its reinstatement for homes bought as a principal place of residence from July 1 will save buyers thousands but will also re-establish Queensland as one of Australia's lowest jurisdictions for stamp duty on residential property.

"If you add this to our affordable property prices, compared to other capital cities, then we are likely to start seeing a return of interstate migrants which will be of benefit to our broader economy.''

Sustainability declarations are expected to be scrapped from July 1, with the Bill currently waiting on final assent.