The Victorian Government has announced it will aid the apartment sector with the introduction of stamp duty waivers and concessions to those buying new and off-the-plan property in Melbourne's CBD.
As of Friday the 21st of May, 100% of the stamp duty on newly completed properties that have remained unsold for a period of 12 months or more will be waived. The waiver will also extend to new off-the-plan purchases worth up to $1 million from July 2021. Those looking to purchase newly built homes within the Melbourne Local Government area up to $1 million that do not qualify for the full waiver are also set to benefit with a 50% stamp duty discount.
The stimulus is targeted at attracting people back to the CBD as a vibrant and desirable place to live. The introduction of the stamp duty waiver, and the lower average prices of apartments compared to houses, is likely to further fuel the trend of homebuyers turning towards apartments as a more affordable alternative for property ownership.
It is thought that the stamp duty concessions will benefit up to 80% of inner-city apartment buyers, and particularly first home buyers looking to get their foot in the door of the property market. (source) The news is a welcome boost to developers of apartment buildings who have been particularly hard hit by COVID. Newly completed apartment developments in the CBD that will qualify for the latest stamp duty waivers include such developments as Botanic, Conservatory, Swanston Central, and Volaire with buyers able to save up to $55,000 on a brand new apartment.
Botanic, South Bank
The waiver applies after all other eligible benefits (e.g. first home buyer duty concession, principal place of residence concession, pensioner concession) have been taken into account. The waiver does not apply to foreign purchaser additional duty. To find out more on eligibility criteria, visit the State Revenue Office of Victoria.
Are you considering buying a new or off-the-plan apartment in Melbourne? The Team at iBuyNew is here to help. Call to chat with our friendly team about what you're looking for in your next new home and how we can help you take advantage of the stamp duty waivers and concessions.