Is the Expanded Off-the-Plan Duty Concession Enough to Tackle Housing Affordability in Victoria?

From 21 October 2024, Victoria expanded the off-the-plan duty concession to include all off-the-plan residential properties, removing previous price restrictions. This change allows buyers of new homes to benefit from a reduction in stamp duty, making it more affordable to purchase off-the-plan properties.

For homebuyers, especially first-time buyers (who may be entitled to a stamp duty exemption as a result of the change), this reduction in upfront costs can make entering the property market more accessible. Developers are also likely to benefit, as the concession could lead to quicker sales of off-the-plan properties, particularly in high-density developments.

The concession, however, is a temporary measure, set to expire on 21 October 2025. Once the concession ends, buyers will again face higher stamp duty amounts, potentially affecting the property market.

The expanded off-the-plan duty concession offers short-term benefits for both buyers and developers but is a temporary measure that will require further government actions to maintain market stability.