Buyer incentives help offset COVID
The State Government announced today that it will be expanding its stamp duty rebate which reflects up to 75% or $25,000 to those projects that have commenced construction. This complements the existing rebate which permits up to $50,000 stamp duty relief if buyers purchase off the plan. The second tier of rebate, for projects that have commenced construction, will be in effect until 31 December 2020 and is available to owner occupiers only.
Ms Reece Director WAAA stated that research conducted by JLL indicated that only 800 apartments would be delivered in Perth in 2020 (half of the stock supplied in 2019) and only 380 in 2021 which would push up demand.
"Ideally WAAA is seeking stamp duty incentives for completed apartments, as once this is absorbed then the demand for off the plan will increase and this will catalyst sales and construction," Ms Reece said.
"Our research shows that there is a preference for purchasing completed apartments as people want to touch and feel the quality and further more banks are more likely to lend.
"We are therefore hoping the McGowan Government will recognise the value in that proposal and support the industry even further."