The State Government's expansion of stamp duty concessions for off-the-plan and under-construction dwellings is genuinely welcome news, with benefits extending far beyond the immediate savings for eligible buyers, who can save over $32,300 per purchase.
The Hidden Barrier of Stamp Duty
For years, stamp duty has served as a significant revenue source for the State Government while simultaneously acting as an anchor on household mobility. A 2025 REIWA Housing Issues survey revealed that 63 percent of respondents identified stamp duty as a major barrier to downsizing.
This stifles the supply of established home listings, as many homeowners who would willingly trade large family homes for smaller, more manageable properties cannot justify the upfront costs involved.
Broader Consequences for the Housing Market
The consequences of this stagnation ripple through the entire housing ecosystem. Every downsizer remaining in a four-bedroom home in an established suburb occupies a dwelling that a growing family desperately needs.
Similarly, every family unable to access such a home remains in a smaller property that a first homebuyer is waiting to enter. The housing market is not merely a collection of isolated transactions; it functions as an interconnected chain, and stamp duty has been quietly jamming it at every link for decades.
Potential of Current Reforms
By reducing the cost of downsizing into new apartments, townhouses, villas, or duplexes, this reform has the potential to set this chain in motion. The extension of concessions to survey-strata dwellings, including duplexes and triplexes, is a particularly thoughtful addition.
This broadens the range of options available to buyers who wish to remain in their local area but require something more manageable than the family home they have outgrown.
Where Further Ambition is Needed
However, the reform invites further ambition regarding thresholds. With many new apartment and townhouse products in Perth already priced above the $800,000 mark, a significant share of the market sits beyond the point of full concession.
Raising the threshold or ultimately moving toward full exemption for downsizers purchasing new dwellings would more accurately reflect current market conditions and deliver the supply response the reform is designed to generate.
The Case for More Ambitious Reform
The State Government has taken a meaningful first step, and the case for going further is already written into the market dynamics. More ambitious reform would benefit not only those who qualify directly but also every household waiting further down the chain, ultimately fostering a more fluid and responsive housing market in Western Australia.
