Sydney Investment Property costs

Foreign investors purchasing a home in Sydney are paying almost four times as much stamp duty as locals, new data has shown.

The finding comes from the latest Stamp Duty Watch report by the Housing Industry Association (HIA).

"Recent changes to stamp duty in NSW mean that foreign investors now pay almost $100,000 in transaction taxes to acquire a standard apartment in Sydney – almost four times as much as local buyers," said HIA senior economist Shane Garrett.

With foreign investors a vital component of rental supply in major cities such as Sydney and Melbourne, he questioned whether more barriers should be placed in the way of new supply especially in current market conditions.

The study found that when purchasing a median price unit in Sydney, foreign investors paid $93,865 compared with $68,970 in Melbourne and $28,905 in Brisbane.

HIA's research also found that the average stamp duty bill for resident owner occupiers went up by 16.4% in the 12 months prior to June 2017 to $20,725 despite dwelling prices only increasing by 10.5%.

Broken down state by state, the typical stamp duty bills as of July 2017 were as follows:

• New South Wales ($25,640)

• Victoria ($30,470)

• Queensland ($7,000)

• South Australia ($16,580)

• Western Australia ($14,915)

• Tasmania ($9,335)

• Northern Territory ($20,994)

• Australian Capital Territory ($18,249)

"On the owner occupier side, stamp duty drains family coffers of $107 each and every month over a 30 year mortgage term," Garrett said.

"Shelling out so much in stamp duty drains the household piggy bank of vital funds for their home deposit. Families are then forced to take out larger mortgages and incur heavier mortgage insurance premiums."