The Victorian government has announced a new 12-month plan that slashes stamp duty for all off-the-plan units, townhouses, and apartments starting today. In a move designed to encourage more dense developments, the Allan government aims to make homeownership more affordable by significantly reducing one of the key upfront costs for buyers.
Under this initiative, buyers of new properties will see substantial savings. For instance, someone purchasing a $620,000 off-the-plan apartment would typically face around $32,000 in stamp duty. However, with the new policy, that cost will drop to just $4,000—offering a $28,000 saving. This expanded concession is available to all buyers and is uncapped, applying to properties of any price.
While the scheme applies to off-the-plan purchases, there are a few conditions. The property must be part of a strata subdivision, meaning detached homes or house-and-land packages are excluded. Additionally, the level of savings will depend on the stage of construction. If the building is half-complete, buyers will pay stamp duty on the portion that’s already finished but will enjoy the concession on the remainder. For projects yet to begin, the full reduction applies, offering even greater savings.
Previously, stamp duty concessions for off-the-plan purchases were limited to first-home buyers and owner-occupiers under certain thresholds—$750,000 for first-time buyers and $550,000 for others. The expanded scheme opens up the opportunity to a broader range of buyers.
This measure is part of the government’s broader housing affordability strategy, which seeks to incentivise higher-density living in key urban areas, as Victoria continues to experience rising demand for housing amidst growing population pressures.
The stamp duty concession is available starting 21 October, and will remain in place for 12 months. Buyers interested in taking advantage of this scheme are encouraged to explore options for off-the-plan developments across Victoria. By offering substantial savings, this policy could spark a surge in new property developments and help more people enter the property market.
While the Allan government hopes this will stimulate new building projects and provide relief for home buyers, the real estate market’s response to the initiative remains to be seen. Nonetheless, it is clear that many buyers could save thousands under this scheme, making homeownership a more achievable goal for many Victorians.
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🏡 Buyers of new #properties can save significantly with the Victorian govt's new initiative! 🎉 For a $620,000 off-the-plan apartment, #stampduty drops from $32,000 to just $4,000—saving you $28,000! 💰 Explore your options today! 🔍 #TheIndianSunhttps://t.co/jtsZFI0Hi7
— The Indian Sun (@The_Indian_Sun) October 21, 2024
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