Soaring agent fees and stamp duties are preventing an increasing number of homeowners from moving, according to new research warning the decline in housing turnover will put upward pressure on property prices.
Transaction costs for the average Sydney home have increased to more than $100,000 from $20,000 since 2000, according to Jarden chief economist Carlos Cacho. The increase has pushed the cost of buying a home to about 80 per cent of disposable income, compared with 28 per cent two decades ago. Because stamp duty thresholds are not indexed to increase alongside property prices, the average stamp duty payment has grown even more than property prices.Deteriorating affordabilityMr Cacho said the increasing cost of buying property was one of the major reasons fewer homes were being listed on the market, while the ageing population and rising prices were also playing a role.
Jarden expects annual housing turnover in 2030 to fall to just 4.5 per cent of the dwelling stock, implying about 62,000 fewer transactions than if it were closer to 5 per cent.