Estate boss Jason Pellegrino is urging state governments to review taxes that make it difficult to enter the housing market as he signaled his ambition to invest heavily in the company’s home lending division.
Pellegrino said local and state governments should invest more in understanding what type of housing is in demand, but admitted there will be a single-digit drop in residential real estate listings over the next fiscal year as prices for housing could drop by up to 20 percent. hundred.
“Housing affordability…continues to be an issue and while prices are going down, price cuts alone won’t solve that problem,” Pellegrino said. “There are a range of issues that I think from a government perspective we need to intervene on…rather than noting the problem and then putting it in the basket too hard.
“We need to meet demand and help people enter the market with government support etc., but we also need to remove friction costs. The current structure of this cost imposes an upfront penalty and hinders trading in this market. »
This is not the first time that Pellegrino has pushed for the abolition of stamp duty. He said in February that there “must be the political will” to move forward with reform. NSW announced in June that it would follow the ACT in moving from stamp duty to property tax.
“We have done research that indicates that the average new home buyer, for example a couple with two incomes, takes several years to save money to pay stamp duty, which slows down the whole system,” Pellegrino said. .
“[Stamp duty] also slows down the entire system on exit, so people looking to downsize are delaying that decision and preventing that property from being made available to people who want to buy there.
The comments came after the publication of the results for the 2022 financial year of the real estate announcement portal. Revenue increased 23.2% to $356.7 million and net income after tax increased slightly to $35.1 million. Earnings [before interest, tax, depreciation and amortisation] rose 21.4% to $122.1 million, and the company will pay an annual dividend of 4 cents next month.
Domain said it expects costs — excluding acquisitions — to rise in the low double-digit range from the fiscal 2022 base of $226.7 million. Nine Entertainment Co, the owner of this masthead, has a 60% stake in Domain.