Upping the ante: Queensland adds taxes for foreign buyers in slowing market

Queensland property developers, in shock from the state government’s policy announcement on Thursday to impose a 3 per cent surcharge on home purchases by foreigners, can take some comfort by looking south.

The extra $10,962 foreigner buyers will pay on top of the existing $11,214 in transfer duty for a $365,000 house or apartment comes at a time when fears of oversupply-induced price falls are growing, but the lessons of Victoria, which made the same move last year, will help.

In the southern state, where foreign buyers will from next month pay a 7 per cent surcharge on residential property purchases – up from the 3 per cent introduced last May – the higher local tax is expected to have a minimal impact on business, said Matthew George, a director of Urban Activation, a company marketing developments such as New Sky Group’s 60-level 88 Melbourne tower in Southbank.