(Brisbane) In recent years, the cost of new homes in Brisbane has risen sharply. In addition to paying the house price, buyers also have to bear high taxes and government-related fees, which can be as high as $348,000, an increase compared to 2019 106%(approximately $179,000).
This is the highest increase among all capital cities in Australiafastest growing, much higher than the growth in Melbourne, Sydney and Adelaide during the same period.
📊 The hidden costs of building a new home
According to a report by the Housing Industry Association of Australia (HIA), $843,000 of newly built houses, including 41% ($348,000) is for taxes and government-related fees, mainly including:
- Regulatory compliance costs ($126,000) – Additional expenses caused by regulations such as building standards and environmental requirements.
- Statutory taxes and fees ($181,000) - includeStamp duty, land taxand other statutory levies.
- Infrastructure costs ($41,000) – For example, public utility costs such as roads, water supply, sewage, etc.
Taxes and government fees for new units have also increased significantly $104,000(An increase of 68%), which means that the apartment market is also facing the same cost pressure.
🏠 Brisbane vs other major cities
The HIA report noted that Brisbane had the highest increase in such costs nationally, but compared to other capital cities, local council charges were still slightly lower than those in Melbourne and Sydney:
| City | Total price of new house | Government taxes and fees | Proportion |
|---|---|---|---|
| Brisbane | $843,000 | $348,000 | 41% |
| Melbourne | $866,000 | $373,000 | 43% |
| Sydney | $1,182,000 | $576,000 | 49% |
| Adelaide | $638,000 | $237,000 | 37% |
While Brisbane house prices remain lower than Sydney, these taxes and government charges areBecoming a heavy burden for homebuyers, seriously affecting housing affordability.
🚧 Bureaucratic procedures and housing supply issues
Chief Economist, HIA Tim Reardon Pointed out that BrisbaneOne of the key reasons for the housing shortage, is that the government imposes too high taxes on new houses, andLengthy administrative procedures, resulting in a shortage of new housing supply.
“While the government claims to be increasing housing supply, it is imposing higher taxes and administrative fees on new homes.Contradiction,” Reardon said.
📌 The “hidden costs” of housing development
- Development permit approval takes 1 year, one-third of the timeUnnecessary administrative delays.
- Additional regulatory requirements(such as environmental standards) further pushed up costs but failed to effectively increase supply.
- Shortage of new homes, resulting in an imbalance in market supply and demand and high housing prices.
Reardon said: "If the government wants to solve the housing problem, it must not just pay lip service but actually reduce development costs and shorten the approval process."
🏚️ Are new homes more expensive than second-hand homes?
In addition to tax and formalities issues,The loan amount for newly built houses is also higher than that for second-hand houses..according to Money.com.au Queensland homebuyers are paying more, on average, for a new property than for an existing one, a report shows.More $23,000This phenomenon is called the **New Build Premium**.
🔹 Data Display:
- Total new home loans in the December quarter of 2024 Year-on-year growth of 12%, while the growth rate of second-hand housing loans was only 9%.
- New home loans in Queensland are higher than existing home loans3.6% higher.
🔹 main reason:
- Rising construction material and labor costs – Shortage of raw materials and tight labor supply push up construction costs.
- Developers raise prices – Corresponding quality improvements, such as energy-saving design and customized options.
- Land prices are rising – Land costs continue to rise in high-growth areas.
- Government subsidies attract first-time buyers – ThroughStamp duty exemptionsPolicies such as the new housing market encourage the purchase of newly built homes, further pushing up prices.
Money.com.au Property Experts Mansour Soltani Points out: "Buyers who buy new homes now oftenNeed to borrow a higher amount, but you won’t get a bigger or better house.”
🔍 How to solve the housing affordability problem?
HIA recommends the Queensland Government should considerReduce taxes and processing costs for new housing,in particular:
✅ Streamlining the development permit process – Reduce administrative delays and get new homes to market faster.
✅ Reduce taxes and government fees – Reduce the burden on buyers and promote investment in housing construction.
✅ Encourage more private development – Increase market supply and bring housing prices back to reasonable levels.
"Governments can't simply raise taxes to solve the housing supply problem," Reardon said. "The key to resolving the housing crisis is to lower administrative barriers and lower the tax burden, allowing the market to truly function."
📢 Conclusion
- Taxes and fees for new Brisbane homes have doubled in five years, reaching as high as $$348,000..
- Government fees now account for 411% of the price of new homes, severely impacting housing affordability.
- Bureaucratic and regulatory delays have led to a shortage of housing and inflated market prices..
- Buying a new home is more expensive than buying a second-hand home, and buyers need to bear higher loans and costs..
- HIA calls on the government to reduce administrative delays and lower taxes to boost housing supply.
Brisbane homebuyers now have to weighShould you bear the higher cost of buying a new home or turn to the second-hand housing market?, the government’s future policy direction will become a key factor affecting the housing market.
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