Millions of dollars waived as stamp duty relief drives demand for new homes
The Malinauskas Government has waived stamp duty for more than 40 downsizers since March, saving South Australians more than $2.25 million in costs on the purchase of their new homes.
The success of the Government's election commitment providing stamp duty relief for seniors is underlined by a leading developer reporting a massive increase in enquiries from downsizers over the past two months.
Cedar Woods, the nationally acclaimed developer behind several urban renewal projects across South Australia, including the Glenside development, says they have seen a 25 per cent increase in enquiries since the scheme was announced.
Cedar Woods has sold 12 new homes to downsizers planning to apply for the relief, with eligible buyers set to save up to $98,000 on a three-bedroom apartment. Stamp duty will be waived entirely for people aged 60 or over who are selling their home and buying a smaller, newly built home or off-the-plan apartment worth up to $2 million.
It also applies to seniors purchasing vacant land valued up to $1.2 million on which to build a new home.
Since the scheme began on March 25, a total of 41 downsizers have had their stamp duty waived, saving a combined $2,253,187.50. The average saving per transaction was $54,955.79. Several more applications are currently being processed, which will add almost $500,000 to the total of stamp duty waived.
The scheme has been budgeted at $75 million over the next four years.
The policy is a key part of the Malinauskas Government's broader housing plan, designed to free up family homes for the next generation of buyers, while further stimulating the construction of new homes.
As older South Australians sell their family homes and transition into housing that better matches their lifestyle, those homes are released back into the market, creating opportunities for first home buyers and growing families to take their next step on the property ladder.
The Malinauskas Government has backed in Cedar Woods’ bold ambition to deliver more homes at Glenside by increasing building heights from 8 to 20 storeys in the north-west corner of the Glenside development, closest to the CBD.
Quotes
Attributable to Tom Koutsantonis
We continue to see strong interest in this innovative new cost-of-living relief initiative, which abolishes stamp duty for downsizers moving to a new home.
We have now waived more than $2.25 million in stamp duty costs for South Australians – with another $500,000 of tax remissions in the pipeline. That’s putting money back in the pockets of South Australian seniors while helping stimulate demand for new builds as well as freeing up larger established homes for families looking to enter the market or upsize as their family grows.
The numbers tell an incredible success story, but so does the experience of developers like Cedar Woods who are seeing strong new demand from customers seeking to take advantage of stamp duty relief.
Quotes attributable to Nick Champion
In just a few short months, we are already seeing the enormous, positive impact our policy to scrap stamp duty for downsizers is having on the housing market.
There is one solution to getting out of the housing crisis, and that is to build more homes.
This policy does just that, driving demand for new construction while at the same time freeing up existing family homes for the next generation.
Downsizers are embracing the lifestyle change and tax break, and in the process freeing up a family home for someone else.
Quotes attributable to David Burton, Cedar Woods State Manager (SA)
We are seeing several buyers bring forward their plans to move house as they plan for or enter retirement, and the stamp duty relief is giving them the confidence to make the move.
Many buyers are empty nesters and seeing the benefit of leaving the larger family home and bigger block behind to give them back more time to spend with family and friends, and to travel interstate and overseas.
Downsizer stamp duty relief creates a ripple effect across the housing market, unlocking established homes for first-home buyers while driving demand for new housing and increasing overall housing supply.
Quotes attributable to Mark McShane, downsizer
Downsizing doesn’t always mean buying a home that’s cheaper than your current property and the stamp duty cost can be the straw that breaks the camel’s back. The stamp duty relief is set to save us $75,000
The move is part of our retirement plan as we slowly ease ourselves out of the workforce and spend more time doing the things we love.
The stamp duty relief policy move by the State Government did what it planned to do, made us commit to downsizing, supported the building of a new home and released a family home onto the market
We are looking forward to living on the city-fringe and a short walk or bike ride into the parklands and East End and being a stone’s throw from shops and entertainment precincts.