The State Government has announced they will extend the Stamp Duty concessions for off-the-plan, inner-city apartments included in last month’s State Budget to the Bowden and Gilberton developments.

The decision forms part of the Government’s ambitions for a vibrant Riverbank Precinct.

Minister for Housing and Urban Development, Patrick Conlon said it was important that these two approved projects receive the same concession, given the area abuts the Adelaide City Council Park Lands.

“We have high ambitions for a vibrant city and these two excellent developments at Bowden and Gilberton are contiguous to the riverbank along the Linear Park and will help breathe life into the city centre,” he said.

“Abolishing Stamp Duty on eligible apartments such as Bowden and Gilberton will potentially save purchasers more than $21,000 and first home-buyers could save more than $31,000.

“This is one way of encouraging more people to move into the centre of Adelaide, turning it into a cultural, innovative and exciting place to live and work.”

Cabinet also yesterday formally defined the Riverbank Precinct to be overseen by the Urban Renewal Authority, led by chief executive, Fred Hansen.

As well as the Bowden and Gilberton developments, the defined area encompasses 11 other key projects including the new Royal Adelaide Hospital, Adelaide Oval Redevelopment, Convention Centre Redevelopment and University Campus Redevelopments.

“It is important these major projects work together to create a public realm that integrates development with public transport, retail and entertainment,” Mr Conlon said.

“The creation of the Riverbank Precinct will ensure a common and connected approach which will significantly contribute to Government objectives of enhancing Adelaide as a vibrant city.

“Mr Hansen will be charged with working with all state agencies involved in the precinct.”

Under the Stamp Duty concessions, from now until June 30, 2014 home buyers can receive full Stamp Duty concession for off-the-plan apartments valued up to $500,000, meaning a concession of up to $21,330.

From July 1, 2014 to June 30, 2016 home buyers will receive partial Stamp Duty concession for off-the-plan apartments valued up to $500,000, meaning a concession of up to $15,500.

Stamp Duty will apply to the notional land value of the apartment and the value of any construction already taken – not the full market value of the apartment.

Purchasers of off-the-plan apartments valued at more than $500,000 will still be eligible for a capped Stamp Duty concession of $21,330 or $15,550 depending on the date of purchase.

Mr Conlon said the recent announcement of an extension to the First Home Bonus Grant (FHBG) was another plus for first home buyers looking to buy an off-the-plan apartment in the city, Bowden and Gilberton, during the next 12 months.

First Home Buyers in the city, Bowden and Gilberton,
May 31, 2012 – June 30, 2013:

State Government’s FHBG: $8,000
(Eligible only for properties valued at $400,000 or less)

First Home Owners Grant: $7,000

Stamp Duty Savings: $16,330
(Based on off-the-plan apartment valued at $400,000)

Total Savings: $31,330