If the Reserve Bank of Australia is concerned about accelerating house prices (TBH I don't think they are overly concerned) this should ease their concerns a little
House prices have been most strong in the states of NSW (specifically Sydney) and Victoria (specifically Melbourne)
- Victoria recently increased its stamp duty surcharge from 3 to 7% & its land tax surcharge for "absentee owners" from 0.5 to 1.5%
- NSW is about to follow suit, its to up its duty surcharge to 4% & add an extra 0.75% land tax from 2017
Making something more expensive should temper demand for it at the margin. If this results in a slowing of price gains, or even falls in prices, it lowers the hurdle to further RBA rate cuts.
Also, it gives hope to Aussie house price bears, who have been so wrong for so long it isn't even funny. Maybe this will perk them up a bit.
