Some interesting lessons here as Queensland prepares to introduce its version of the Foreign Acquirer tax via a stamp duty surcharge. While our 3% is somewhat modest compared with the 15% introduced in Vancouver, are we still confident that a corresponding drop in foreign investment won't occur and if there is a drop, are there local buyers on the ready to fill the void?
According to data released by the B.C. government today, billions of dollars in Metro Vancouver real estate deals dried up virtually overnight after Clark introduced a 15 per cent tax on foreign nationals last month. The number of transactions involving foreign buyers plunged, from 2,034 deals in the seven-week period before the tax, to 60 in the four weeks starting Aug. 2. "My hope is that many of those units that would have sold to foreign buyers, will now be sold to British Columbians," said Clark. The percentage value of sales involving foreigners also fell from 16.5 per cent of all sales to 0.7 per cent in the month after the introduction of the new tax, The numbers also revealed a huge spike in sales on the final business day before the tax was implemented.