Stamp duty slashed for Off-the-Plan properties in Victoria in stimulus plan

Starting today, stamp duty will be significantly reduced for all off-the-plan apartments, units, and townhouses in Victoria under a 12-month stimulus initiative by the Allan government.

Premier Jacinta Allan is expected to announce the policy today, which will see the uncapped concession apply to all buyers.

Massive stamp duty savings

Under the new scheme, the government estimates that a buyer purchasing a $620,000 apartment will pay just $4,000 in stamp duty, a savings of $28,000. The measure is part of a broader strategy aimed at stimulating development and providing more affordable housing options across the state.

"More apartments and townhouses getting built means more homes for young people and families to rent or buy," Allan stated.

The policy will be available immediately, covering all off-the-plan properties that are part of a strata subdivision. Detached homes and house-and-land packages are excluded from the concession. The government noted that savings will vary depending on the stage of construction-fully unbuilt homes will benefit the most, with stamp duty reduced to around a quarter of the usual cost.

The move comes as part of a week of announcements from the state government, which is focusing on tackling Victoria's housing crisis. On Sunday, Ms Allan faced protests in Brighton after revealing a plan to create 50 new activity centres that will increase housing density around transport hubs. The opposition has criticised the initiative, accusing the government of limiting Victorians' choice in housing options.

Industry approval

Industry leaders such as Tom Hywood, GM and Co Founder of AD Group welcomed the stamp duty cuts and praised the government's concession, saying it would provide a much-needed boost to the off-the-plan market, which has been impacted by rising interest rates and construction costs.

"The announcement today is a step in the right direction. Expanding concessions available to off-the-plan buyers will have an immediate impact and reduce the tax driven hurdles that many Victorians have been facing in their journey towards homeownership," said Tom. 

Cath Evans, executive director of the Property Council of Victoria, also praised the decision, stating that the reform would support new housing projects and help meet the state's ambitious housing targets.

"Current analysis of the build-to-sell apartment market by Charter Keck Cramer shows apartment commencements in Melbourne have declined to less than 4000 a year," Evans said.

"Off-the-plan concessions for all purchasers will help bring back new buyers to this important part of the housing market.

"Increasing off-the-plan purchases has been proven to support the feasibility of new housing projects, which in turn unlocks further development. With Victoria's ambitious housing supply targets in mind, this is a big step in the right direction.

"We welcome the application of these concessions to the townhouse market too, which operates across all parts of the state."

Treasurer Tim Pallas highlighted that the concession would substantially reduce upfront costs for buyers, offering much-needed relief amid rising living costs. Allan has promised further housing-related announcements in the coming days as the government looks to address Victoria's housing shortfall.

SEE ALL: View off the plan developments in Victoria