Sorry I don't agree BBM, I jusy don't think reducing stamp duty will have dire consequences at all. People don't determine what they are going to do purely by the cost of stamp duty, in fact, low interest rates, and the state of the economy (which decides how much money people have to spend), is the contributing factor, heped along by schemes such as the 14K grant. Your logic would suggest that maybe the stamp duty should be increased as a means of reducing demand.
In Melbourne, the price of housing remained stagnant for probably 7-8 years. It was going to have to catch up sooner or later, and thats what we have seen. I see it as a normal cycle.
In my opinion the market is coming off now, clearance rates are down, and many houses are getting passed in. This to me indicates that sellers are demanding more than is reasonable, and that the market is topping off.
Yes I knew I would get picked up on the stamp duty on a sale, which as you correctly point out does not happen. It was a primary residence, so I had to buy elsewhere, this is where I had to pay stamp duty.
