Stamp duty concession delivers boost for NSW

by BN03 Sep 2009

Latest ABS figures show approvals were granted for 824 private sector apartments and townhouses in NSW in July, nearly double the 425 approved in June.

According to the Urban Taskforce, which represents the property developers industry, it shows that the stamp duty concession announced by the NSW Government in the State Budget "is beginning to bear fruit".

Under the NSW Government's Housing Construction Acceleration Plan, from 1 July until 31 December 2009 purchasers of newly constructed homes, other than first home buyers, only pay half the normal stamp duty on purchases of up to $600,000 in value.

"The stamp duty reduction for new homes, together with recent planning reforms, has helped restore some confidence in NSW," said Urban Taskforce CEO Aaron Gadiel.

"Developers have been keen to secure approvals so that they can sell new homes off the plan under the six month-long stamp duty concession," he said.

The grant delivers savings on a $400,000 purchase of just under $7,000 and $9,000 for a $500,000 purchase.

The maximum benefit goes to a purchase of a $600,000 home, where the saving is just over $11,000.

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