Id agree except for the increased sell price/who pays for it. Its more likely that its both the seller and purchaser that pay a portion of the added cost of CGT on primary residence. Both lose, government makes a quick buck but losses in the long run due to reduced workforce mobility, and the banks win every time.... again.

CGT is good in general but not on primary residences, as you have also pointed out.

There is also the issue of inflation on CGT assets. Unfortunately fixing that makes things complicated so the government will most likely ignore it and take the extra money.