In a boost for first time property buyers, the 50% stamp duty discount announced in last week’s Northern Territory Budget has commenced, and the phones at Raine & Horne’s Palmerston office are already running hot with enquiries from entry-level buyers.

The discount will apply to established properties valued up to $450,000 and is capped at $10,000 for more expensive properties, and it will make housing more affordable for first-home buyers in Darwin and Palmerston.

The concession will apply until 30 June 2017 and it will be reviewed to determine if it should be extended. The $26,000 first-home buyer grant for the purchase of new homes remains in place.

This announcement will create the perfect storm for first home buyers who will enjoy the benefits of less stamp duty, at a time where we’ve had easing house prices in Darwin and historic low interest rates.

This will get more first home buyers into the market, which is excellent policy making in light of the low volumes we’ve experienced over the last two years.

Since last week’s Budget, first home buyer enquiry levels had picked up significantly, with housing markets in Palmerston expected to be major beneficiaries.

The stamp duty breaks are going to help more first timers to jump off the rental treadmill and we expect housing markets under $450,000 in established suburbs in Palmerston such as Bakewell, Driver, Rosebery, Farrar, Grey, Malden and Durack to benefit.