The scheme offers rebates of up to $50,000 which will be offered to West Australian property buyers purchasing new off the plan apartments.
The 75 per cent stamp duty relief would be available to buyers who sign a pre-construction contract to purchase new apartments within the next 2 years. The policy is expected to cost the state $29 million, with Premier Mark McGowan saying the state's improved budget position would be used in an attempt to create jobs and stimulate the economy.
The new scheme will have no purchase price cap allowing people buying more than one unit the ability to be eligible for multiple rebates.
Speaking with Realmark Group Managing Director, John Percudani he stated, “Whilst the new scheme is most certainly welcomed it is not enough. We have a property market that lacks sufficient first home buyers, especially new home building, and investor participation to create a healthy and balanced property market. Most of today's market activity is by upgrading buyers which shows an imbalanced market.”
“Stamp duty is a huge financial impost to property transactions and a reduction in stamp duty even if targeted to the medium price point could have huge benefits in stimulating the market that would benefit the wider WA economy which is lagging at this time. It would also help to ensure housing supply and affordability is maintained at a time when we are now seeing positive population growth in WA after a long subdued period.”
John continued, “Over the past five years, we have seen an estimated 40% downturn in both the market value of properties sold and transaction volumes in WA. Overall the WA property market is in a subdued state and could value significantly to economic activity at this crucial time with stamp duty refinement and other targeted government investment.”
Echoing Mr Percudani’s sentiment, industry groups strongly welcomed today's announcement, saying it would encourage people back into the market, however, more still needed to be done.
"I think this has come just at the right time for the sector," Master Builders Association executive director John Gelavis said.
But he said the industry still hoped the Government would do more to help the sector.
"I think it is a good time to be looking at these announcements and what else we can do to help stimulate the sector over the next three or four years," he said.
The announcement comes on the same day the Liberal Party also announced new pre-election policies designed to stimulate the property sector.
Those included a moratorium on the tax on property purchases by foreigners, stamp duty relief for seniors downsizing and an increase to the payroll tax threshold.
Read the full release here.