Why WA is looking for downsizers in duplexes and offers great savings to do it

Home buyers can save up to $32,300 on off-the-plan and triplex homes in Western Australia for the first time under new stamp duty discounts aimed at downsizers.

The Western Australian Government has extended its stamp duty rebates to a range of test houses, including duplexes and triplexes, when bought off-plan or under construction.

It means all home buyers in WA can now avoid paying stamp duty on flats, villas, townhouses and units when bought off-plan or during construction.

It comes as the state government tries to encourage buyers to build a new home rather than buy an existing property, increasing housing supply as house prices rise in the state.

The median home price in Perth rose 19.5% to $987,000 in the year to February – the strongest annual growth of any capital city in the country – while home prices in WA state fell 14.9% to $622,000, according to the PropTrack Home Price Index.

Over the past five years Perth’s median house price has doubled, increasing by 98.3%, while regional WA house prices have increased by 95.2%.

WA Treasurer Rita Saffioti said by extending stamp duty concessions to more homes, they were giving more choice to buyers and making home ownership more accessible.

“This means that seniors in Western Australia looking to downsize can save thousands if they buy a new apartment, townhouse, villa, or unit off-plan or under construction,” Ms Saffioti said.

“We are committed to ensuring that every West Australian has access to a quality home and supporting the delivery of more affordable housing developments is key to our state’s housing future.”

Stamp duty deals are often targeted at first home buyers, but local governments are increasingly opening up discounts to the general public and targeting new homebuilders.

Governments are also trying to encourage downsizers to move out of large family homes into smaller homes once their children are out, freeing up these homes for growing families.

The median home price in Perth rose 19.5% to $987,000 in the year to February. Photo: Getty

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The 2025 realestate.com.au GemLife Downsizing Australia report found more than four in five (85%) people aged 55 and over live in homes with two or more spare bedrooms in Australia.

The report, which surveyed 2,051 consumers across the country last year, also revealed that a quarter of households between the ages of 25-54 have no spare rooms, while 5% have too few rooms to fit their families.

REA Group chief economist Angus Moore said Australia’s population was ageing, with more than a third of them expected to be aged 55 or over by 2050.

“As our statistics change, so will the types of housing we need,” said Mr Moore.

“The old houses are small, but most of our existing houses and the houses we are building are still large, detached houses that are better suited for large families.

WA buyers can save on stamp duty when buying flats, units, duplexes and other homes off-plan or under construction. Photo: Getty

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“Encouraging older and smaller homes to be downsized will be critical to ensuring we meet the needs of older people and use the homes we currently have more effectively.”

In addition to duplexes and triplexes, the state government raised the permit limits by another $50,000.

Under the increased thresholds, no stamp duty will be payable on off-plan properties up to $800,000 – previously $750,000 – and rising to 50% of concessions above $900,000 (previously $850,000).

For homes purchased while under construction, a 75% rebate is available up to $800,000 – previously $750,000 – up to a 37.5% rebate over $900,000 (previously $850,000).

For an $800,000 property, buyers will save more than $32,300 if they buy pre-construction or more than $24,200 if they buy while the property is under construction.

The state government has invested $70.6 million to extend the stamp duty rebate for off-plan and multi-family housing, extending it until 30 June 2028.

Victoria and Tasmania have also given stamp duty permission for off-plan property and houses under construction (other than houses) to the general public. South Australia’s re-elected government promised stamp duty rebates to cutbacks at the recent state election.

Building permits in Western Australia rose 13.2% to 24,544 in the year to January, compared with the previous 12 months, according to seasonally adjusted figures from the Australian Bureau of Statistics.

However, there are fears that rising interest rates and rising fuel prices will increase construction costs amid the country’s construction boom.