Off-the-plan apartment buyers will receive stamp duty relief, after the WA Government yesterday announced a stimulus package offering rebates of up to $50,000 on purchases in new developments.
Under the initiative, buyers who sign pre-construction contracts to purchase a new residential unit in a multi-tiered development will be eligible for a 75 per cent transfer duty rebate of up to $50,000.
The rebate, which will be available for two years, was effective from October 23.
There will be no cap on the purchase price and multiple rebates will be available to the same applicant.
WA Premier Mark McGowan says the move will help the struggling residential housing sector.
“This new WA jobs initiative will drive investment into our local residential construction industry and support the WA property sector,” McGowan says.”
“Effective immediately, it’s another targeted measure to help stimulate our economy, which we can afford to do because we got the finances under control.”
The government expects the rebate will reduce the stamp duty paid by a first-home buyer purchasing a $450,000 apartment from $3800 to $960.
Treasurer Ben Wyatt says the initiative will help direct investment in WA and promote jobs in the WA construction industry.
“Infill helps to drive a number of important outcomes for the people of Western Australia, including more affordable housing, a better environment, revitalised shopping precincts and stronger communities,” Wyatt says.
The announcement has been welcomed by industry bodies, including the Urban Development Institute of Australia (WA) and Housing Industry Association.
UDIA WA chief executive Tanya Steinbeck says the announcement is an important step towards turning Perth’s residential housing market around.
“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,” Steinbeck says.
“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.”
HIA executive director Cath Hart says the association has been advocating for greater government support in the face of “some of the toughest conditions in living memory”.
Hart says the association is pleased the government appears to understand the challenges facing the industry, particularly in response to infill development.
“This will mean a swift boost for building activity which will be great for local jobs and give industry the confidence to retain and train more workers,” she says.
“With more than 120,000 people employed in construction in WA, the positive impact of this initiative will be felt across the entire home building supply chain.”