Concessions’ effect on supply of affordable housing options
The Property Council commends the Victorian Government’s ambition to increase capacity for first home buyers to enter the housing market.
Property Council Victorian Executive Director, Sally Capp, said the industry welcomes the stamp duty exemption for first home buyers for purchases of up to $600,000.
“It is however important that the Government strikes a balance between increasing demand from first home buyers and supporting the supply of housing options for all Victorians.”
“Of most concern to the Property Council is the abolition of stamp duty concession for investors. Our initial review of the data reveals that the investor market in particular underwrites the concept to completion of new apartment projects. Investors pre-purchase more than 50% of the off-the-plan apartments, making the projects financeable and enabling the developer to proceed with construction. These projects then add to the rental housing supply available for first home-buyers,” said Ms Capp.
“While we want to support first home buyers, it cannot be at the expense of the rest of the market.
“Stamp duty concessions for off-the-plan purchases has been a competitive advantage for Victoria; its abolition may have long term implications for our economy.
The Property Council looks forward to working with the Government as it releases the details of its policy program to understand the implications for all cohorts within the property sector and the State.
“We support initiatives that address housing affordability but they must stack up to be successful. We acknowledge the State’s commitment to spend $1 billion over the next four years, creating housing choice and jobs for Victorians.
“We do not believe that the Government is seeking to increase its tax revenue at the expense of the residential sector. We trust that the Government will work with industry to find a considered approach, which maintains housing choice and ensures that any impact on the wider market can be ameliorated.
“We must continue to work on initiatives that increase our economic productivity and facilitate livable and affordable housing outcomes,” said Ms Capp.
Media contact: Sally Capp | M 0439 983 693 | E firstname.lastname@example.org