Quote:
Originally Posted by Wormius
I know 5% is not insignificant, but… is it really a huge deal? It doesn’t seem like it really pushes the affordability factor much.
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It wouldn't really improve affordability at all if it's an across the board thing like the Conservatives are suggesting, at least directly. GST is only charged on newly built units, so in order to compete with existing stock, currently they have to be priced lower to account for the GST charge.
Where it could theoretically impact things is by improving builders' margins, since they can now sell newly built units for a similar price to existing ones. That could lead to more housing construction. But for the construction of units that are already viable, chances are they'd just pocket the difference.