The Urban Development Institute of Australia (UDIA WA) has welcomed this morning’s state government announcement that a stamp duty exemption will be introduced for multi-unit dwellings.
The move comes following appeals from industry that a package of policy measures is required to stimulate the flagging residential property market.
“The current process for calculating stamp duty on multi-unit dwellings that are pre-sold off the plan is inequitable and has stymied apartment sales in Perth, particularly at a time when the state government is aiming to increase infill and higher density development,” UDIA WA CEO Tanya Steinbeck said.
In WA, multi-unit dwellings are pre-sold off-the-plan with stamp duty payable on the full sales price of the new dwelling. In contrast, for new single-dwelling lot sales, stamp duty is typically payable on the land component only, not the separate home building contract.
From today, buyers who sign pre-construction contracts to purchase a new residential unit or apartment in a multi-tiered development will be eligible for a 75 per cent transfer duty rebate of up to $50,000.
The rebate will be available for two years to any purchaser of a dwelling in a multi-tiered development. No cap will be placed on the purchase price and multiple rebates will be available to the same applicant for additional unit or apartment purchases within the same or different developments.
“With immediate implementation, we are expecting to see a positive reaction from the market given the generous and potentially multiple rebates on offer. This opens the door for seniors looking to right-size into a more appropriate dwelling, and will support the state government’s infill agenda,” Ms Steinbeck said.
“With a two-year time period for the rebate, this provides a much-needed injection of activity to stimulate jobs growth in the construction sector and the flow on impacts of that to the broader economy will be positive,” Ms Steinbeck said.
“Today’s announcement is another important step toward turning our market around,” Ms Steinbeck said.
UDIA WA, together with other industry bodies would also like to see further consideration given to other proposed measures, including:
- Increase Keystart purchase price cap to $550,000
- Combine and match Keystart’s ‘Couples’ and ‘Families’ income categories to match the new family limit of $155,000
- Increase the Stamp Duty exemption for First Home Buyers to $550,000 for existing stock in line with revised Keystart purchase price cap
- Adjust the rate of the Foreign Buyers Surcharge to 4%
- Deliver an additional 300 social housing dwellings
- Support population growth by reinstating Perth with regional migration status
“These measures presented to government are a well thought out and strategically designed package to stimulate the residential market across the board,” Ms Steinbeck said.
“We congratulate the state government on its swift action and openness in engaging with our industry and we look forward to continuing the conversation,” Ms Steinbeck said.
Ends.
For more information:
Gemma Osiejak
Executive Manager Communications and Marketing
UDIA WA
P: 0421 506 819
E: gosiejak@udiawa.com.au