Auction Markets Impacted by Stamp Duty Concession

The bleak auction markets welcomed some good news with the new stamp duty concessions for first-home buyers in New South Wales and Victoria taking effect on 1 July 2017.
The aggregate preliminary clearance rate across the country’s seven capital cities rose to 70.3% in the first week of July, up from last week, when the final figures showed the clearance rate declined to 66.5%. According to CoreLogic, this was the lowest clearance rate since June 2016.
Sydney, NSW
Stamp duty for first-home buyers for new and existing homes worth up to $650,000 has been scrapped and stamp duty concessions for first-home buyers for properties worth up to $800,000 have been enacted.
In the last week of June, Sydney posted a preliminary clearance rate of 72.6%. This was not the most interesting statistic to be disclosed from the results, though. It was the decline in the median house and unit price from the past week, according to a real estate expert.
According to the Domain Group, prices dropped for the week. Media house price in Sydney dropped from $1.5 M during the past week to $1.4 M last week. The median unit price dropped to $855,000 from $960,000.
Many first-home buyers are delaying, more cheaper properties are being sold as sellers postpone completing sales until 1 July, which naturally causes median prices to drop.

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