Newly unveiled tax concessions for apartments, units and townhouses will provide a shot of confidence for the property industry and boost the supply of new homes for Victorians.
In a significant advocacy win, the Property Council congratulates the Victorian Government for adopting the industry’s proposal for deeper off-the-plan stamp duty concessions.
While the concessions may only be operational for the next 12 months, Property Council Victorian Executive Director Cath Evans said the announcement will translate directly to the feasibility of new housing projects.
“Apartment and unit developers have been hit hard in recent years by a combination of factors,” Ms Evans said. “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.
“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.”
Ms Evans said it was vital for the performance of the concessions to be closely monitored during the next 12 months, with a view to an extension.
“We have long advocated for positive changes in taxation policy to stimulate the construction of new homes. If this policy directly translates to housing supply, we strongly believe it should continue beyond this initial 12-month period,” Ms Evans said.
“We will continue to advocate strongly over coming months for further positive changes.”
