Pre-emptive stamp duty push

A growing number of Perth property developers are offering stamp duty refunds in a bid to stimulate land sales, which they say have slowed significantly since Treasurer Eric Ripper flagged potential stamp duty relief in the upcoming May budget.

Cedar Woods Ltd, Peet Ltd and Macquarie Bank-owned Urban Pacific Ltd are among the developers to have started promoting stamp duty refunds.

Several other big name developers, including Satterley Property Group Pty Ltd and Cape Bouvard Investments Pty Ltd, are also considering offering home site buyers stamp duty rebates.

Urban Pacific was one of the first developers to offer a stamp duty refund. It has been promoting refunds for home sites at its Somerley Estate in Clarkson since the middle of February.

But more recently, Cedar Woods and Peet Ltd have been promoting similar offers.

This week, the Australian Bureau of Statistics revealed that new home building starts had fallen 2.3 per cent in the December quarter, following a 10.2 per cent slump in the September quarter.

Cedar Woods development manager John Silla said the property group was offering stamp duty refunds at two of its estates, one in the northern suburbs at The Kestrels in Tapping and the other in the southern corridor at The Rivergums in Baldivis.

“We felt that there were some concerns out there and uncertainty about what was going to happen with stamp duty,” Mr Silla said.

He said land sales had slowed since the Mr Ripper revealed stamp duty relief on property conveyances was almost certainly on the way.

“It had a more moderating effect in terms of the take up of lots,” Mr Silla said.

“If that was the major concern and the show stopper (for would-be buyers) than it made sense to do something in that area.

“It is early days but we have experienced better traffic flow of people coming in to the estate, so it has created some interest.’’

Peet Ltd managing director Warwick Hemsley said the group had decided to pay stamp duty to the government on behalf of buyers of selected lots at its Ashton Heights and Carramar Heights estates near Joondalup to make land more affordable.

“Peet Ltd gives purchasers a range of incentives, including a variety of Flying Start packages, which includes things like landscaping, fencing and even broadband access,” Mr Hemsley said.

“Waiving stamp duty is another way Peet boosts the affordability of land.”

Urban Pacific project director David Cecchele said affordability was one of the issues contributing to the slowdown in WA’s housing market.

“Land sales in WA have slowed from the peak experienced in the middle to the end of the third quarter of 2006,” he said.

“Affordability for first home buyers is one of the issues that have contributed to the slow down, now that the Perth median price has almost caught Sydney’s median.

“When these trends have occurred previously in other capital cities, sales volumes and price growth has slowed and there has also typically been a flow-on effect on migration, with inward population growth also tending to be impacted.”

• The writer holds a beneficial interest in Peet Ltd.