The Urban Development Institute of Australia (UDIA WA) has welcomed the expansion of the off-the-plan (OTP) stamp duty concession announced by Deputy Premier and Treasurer Rita Saffioti MLA at a packed industry event this morning.
“This is an important action in support of downsizers and those seeking smaller or more compact housing options to suit their needs,” UDIA WA CEO Tanya Steinbeck said.
“UDIA WA has been calling for the extension and expansion of the OTP stamp duty concession, including in our most recent Pre State Budget Submission, and we welcome the State Government listening to our recommendations,” Ms Steinbeck said.
“The OTP stamp duty concession incentivises the purchasing of apartments and other grouped dwellings such as townhomes, which opens up more choice for buyers,” Ms Steinbeck said.
“If we are serious about consolidating Perth’s urban growth and supporting more infill development, then we need these types of measures that will drive demand for more medium and higher density housing,” Ms Steinbeck said.
The announcement today extends the current OTP stamp duty concession for another two years and the purchase price cap has been increased to $900,000.
This means that no stamp duty will be paid for dwellings purchased off-the plan up to $800,000, tapering to a 50 per cent concession above $900,000.
The concession will now also include new survey strata housing which means any new unit product, including apartments, will be eligible.
“Increasing the price caps is also an important recognition of the current market and rising costs,” Ms Steinbeck said.
“Buyers deserve choice, and with an aging population, it is especially important that people can downsize within their local community or in an area that offers convenience and positive lifestyle benefits, without the extra layer of cost that stamp duty poses.”
“Facilitating downsizing also means we are unlocking larger homes in existing areas for families and households that desperately need those options.”
“Not only does the OTP concession encourage buyers to purchase an apartment or townhome, it also supports new projects that are adding to desperately needed housing supply,” Ms Steinbeck said.
“Developers are experiencing challenges in making apartment and other built form projects ‘stack up’ due to high materials, labour and other costs associated with development,” Ms Steinbeck said. “This is particularly acute at the affordable end of the market.”
“A concession for off-the-plan unit purchases supports freeing up larger and typically underoccupied housing, while helping projects sustain consistent sales momentum from launch through to completion”, Ms Steinbeck said.
“Once again, I congratulate the Cook Government’s willingness to listen to industry and implement measures that will simultaneously support buyers into a home of their choice, while also supporting developers to get more housing on the ground, faster.”