Sydney slaps new stamp duty on foreign buyers

Sydney

FOREIGNERS buying homes in Sydney will face a new property tax from next week when New South Wales becomes the second state in Australia to impose such a duty as soaring demand from China helps drive record prices.

Australia's most populous state plans to introduce a 4 per cent stamp duty surcharge from June 21 and from next year a 0.75 per cent land tax surcharge on foreign purchasers, New South Wales Treasurer Gladys Berejiklian said in an e-mailed statement on Tuesday.

The measure, which comes on top of stamp duty that applies to all buyers, is expected to raise more than A$1 billion (S$997 million) over four years. Purchases by foreigners, many with a connection to China, have helped Sydney's median dwelling value to almost double since the end of 2008, according to CoreLogic Inc, triggering community concerns that locals are being priced…