Peak body lauds government move
The Western Australia state government has introduced a new off-the-plan stamp duty concession for purchasers of apartments that are already under construction. Previously, this concession was only available for new off-the-plan purchases.
This latest move builds upon previous measures aimed at promoting the property market. Earlier, the off-the-plan stamp duty rebate was transformed into a concession, providing buyers with an immediate discount. Additionally, the thresholds for eligibility were raised, and the scheme was extended until June 2025.
Cath Hart, the CEO of the Real Estate Institute of Western Australia, lauded the move.
“These changes represent significant savings for buyers – over $18,000 for someone purchasing a $650,000 apartment – and will encourage off-the plan purchases, facilitating development of these projects,” Hart said. “With housing supply the greatest challenge facing the market at the moment, any action to address the shortage of homes and provide greater housing diversity is to be commended.”
The new off-the-plan stamp duty concession for apartments under construction is expected to encourage more buyers to invest in these properties, ultimately contributing to the growth of the housing market, REIWA said.
Under the updated scheme, buyers of apartments under construction who sign an eligible contract will receive a concession of up to 75% of the current concession available for off-the-plan purchases. However, this concession is capped at $50,000. The specific tiers for the under-construction duty concession are:
- 75% of duty payable for properties valued up to $650,000
- 75%, sliding to 37.5%, of duty payable for properties valued between $650,000 and $750,000.
- 37.5% of duty payable for properties valued at $750,000 or more.
In addition to the off-the-plan stamp duty concession, the state government has also allocated a further $15.45 million through the $80 million Infrastructure Development Fund to support 15 new infill developments. These developments are expected to add over 1,500 apartments to Western Australia's housing stock.
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The Infrastructure Development Fund aims to provide financial assistance to address upfront costs associated with connecting essential water, electricity, and sewerage infrastructure, REIWA said. By alleviating these costs, the viability of housing projects is enhanced, enabling more efficient and sustainable development.
Out of the $80 million fund, $40 million has been allocated to infill developments in metropolitan Perth, while the remaining $40 million will be directed towards workers' accommodation in regional areas. In total, nearly $22 million from the infill stream will support 27 projects, leading to the construction of almost 2,200 apartments, REIWA reported. Additionally, $12 million has been allocated to three projects through the worker accommodation stream, resulting in the creation of nearly 500 dwellings in Kalgoorlie, Broome, and Shark Bay.
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