Victorians looking to buy apartments or townhouses off the plan will, from today, pay less stamp duty, under a new plan from the government to turbocharge the state’s housing sector. It’s hoped the new tax reduction will encourage more people to buy and developers to build, but not everyone is convinced it will work.
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00:00One of Melbourne's newest high-risers gets the tick of approval from the Premier.
00:09This build-to-rent apartment complex in Fitzroy North is ready for new tenants, but it's prospective
00:15apartment buyers that Jacinta Allen has in her sights.
00:19This initiative is designed to do three things, build more homes, build more homes and build
00:24more homes.
00:26The new initiative announced today is a stamp duty concession for all buyers of apartments
00:31and townhouses purchased off the plan.
00:35The off-the-plan stamp duty concession that cuts upfront costs for buyers will now be
00:40extended to everyone, first home, occupier and investor, and secondly limits will be
00:46removed so the concessions will apply to apartments, units and townhouses of any value.
00:53Under the tax break, buyers of a $620,000 apartment will pay just $4,000 in stamp duty,
01:01a $28,000 reduction on what they would usually pay.
01:05Essentially this is about providing more housing stock, more homes for Victorians.
01:12For developers to be able to get away with projects of this nature, that is apartment
01:17blocks, then effectively they need a level of pre-purchase.
01:22The success of the government's policy will depend on prospective buyers like Eliza Portelli
01:28and whether they opt to buy off the plan.
01:30I've been saving my whole life, I'm a really good saver, and always with the thought of
01:37buying a property at some stage.
01:39No, I wouldn't consider buying something off the plan for sure.
01:43And she says even a stamp duty break won't change her mind.
01:47I don't feel confident that these types of homes are always built with quality materials.
01:54And then there's the other issue, cost.
01:56These super high-rises will be so expensive they're out of reach for young Victorians.
02:01It follows hot on the heels of the government's plan for new high-density zones in inner city Melbourne.
02:07Yesterday we announced the next tranche of activity centres where we're going to focus
02:12on building more homes close to public transport, and in coming days we'll have even more to
02:16say about further reforms.
02:19Before Jacinta Allen took the top job, Labor had already promised to deliver 800,000 homes
02:24in a decade.
02:25It's currently well behind on that target, but one year into her tenure and two years
02:30on from the state election, these policies are shaping up to be a cornerstone of the
02:34government's plan to address the housing crisis.
02:37The Premier now just needs them to work.