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.

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.

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.

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