A fundamentally flawed proposal to bust open super for first home buyers housing deposits could hike the nation's five major capital city median property prices by between 8-16%, preliminary analysis from Industry Super Australia shows.
Allowing couples to take $40,000 from super would send property prices skyrocketing in all state capitals, but the impact would be most severe in Sydney, where the median property price could lift a staggering $134,000.
In most areas the price increases and extra property taxes would quickly surpass the amount of super a first home buyer could withdraw, so homebuyers would be paying more but at the expense of their super. In all cities but Hobart if a couple took out $40,000 from their super, nearly all could be lost through the price hikes the increased demand would fuel, in Sydney prices would spike by three times that amount.
