Northern Territory Chief Minister Michael Gunner has unveiled an ambitious Territory Home Owner Bonus that will deliver increased incentives for anyone building or buying a new home in the Northern Territory.

Mr Gunner said the suite of measures aims to retain current Territorians while growing the population through attractive incentives for those wishing to move to the NT.

The housing industry has welcomed the Northern Territory government's new homeownership package announcement, designed to prevent the Territory's population from declining further.

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Pictured: 9 Orchard Road, Coconut Grove. Sold by Paul Heron of Belle Property Darwin, as seen on Luxury List. 

Housing Industry Association regional executive director Archie Wright said the flow-on effect for the state's economy and the population will keep tradies in the area.

"The residential and building sector is a large sector in the Territory and we can’t afford to be losing builders or traders to down south," Mr Wright said.

What the scheme includes:

• First-home buyers choosing to buy an established dwelling will now receive up to $18,601 in Stamp Duty concession, plus a $10,000 Renovation Grant.
• It's a little more generous for those building a new home, who get a $30,000 Build Bonus, a $2,000 Household Goods Grant and up to $18,601 in Stamp Duty Concession.
• Territory homebuyers (people who have not owned a dwelling in the Territory in the past 24 months, including people moving to the Territory and Territorians who want to, or have returned to the Territory and have been renting for the past 24 months) will receive up to $18,601 in Stamp Duty concessions if buying an existing dwelling.
• If they're building a new home, they will receive a $20,000 Build Bonus in addition to the Stamp Duty concession.
• Current Territory homeowners who want to build a new home will receive a $20,000 Build Bonus - but no Stamp Duty concessions. 
• Divorcees will even get special consideration under the new scheme, with the 24-month non-ownership period waived.  

Real Estate Institute of the Northern Territory (REINT) CEO Quentin Kilian says it's the most generous homeowner incentive in the country.

"This package now gives the Territory the most generous homeowner incentives in Australia, and it means that the Northern Territory is the only jurisdiction in Australia that is actively reducing or scrapping Stamp Duty on home purchases. While all the other States are raising their taxes and adding new ones, home buyers in the Territory can get nearly $20,000 stamp duty relief," he told WILLIAMS MEDIA.

But Mr Kilian warns there are some caveats:

• All programs will be reviewed at the end of 2020.
• The Build Bonus is a one-off payment to build or buy a new home.
• The scheme is capped at $12 million, which means there are only 600 grants are available. For the Stamp Duty concession of $18,601 it means for homes valued up to $430,000 the buyer will pay no stamp duty. For homes valued between $430,000 and $650,000 some stamp duty will be payable but it will be discounted by the $18,601. Homes valued over $650,000 no stamp duty concession is applied.

Despite this, he says the news is welcome given the current economic climate. 

"Now is the time for people to start thinking about a move north where there are plenty of jobs, plenty of sunshine, plenty of affordable properties and, if you buy or build at the right price, NO stamp duty," Mr Kilian said.

Local agent Jamie Pollock of Sotheby's International Realty Northern Territory told WILLIAMS MEDIA he has seen a "solid spike" in enquiry from first-home buyers since the announcement.

"There is a steady enquiry from first home buyers with last weeks government announcement providing a solid spike in email & phone enquiries of approximately 30 per cent. The first home buyer enquiry is predominately from people already residing locally," Mr Pollock said.

"We recorded very substantial rises in attendance at open homes over the weekend following the government announcements (a massive 400 per cent increase compared with the previous two weeks). We’ve not seen a jump in numbers like it."

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After the initial sharp decline in property prices, Mr Pollock says values have stabilised over the last six months.

"The market is steady with many people embracing with the old rule that you “buy in cheap and sell high”.

Mr Pollock says interstate investors are flocking to the Territory.

"We’re seeing a big increase in interstate investor enquiry who have identified our local market as representative of excellent value.

"They’re confident that the Territory will be the first of the major markets to bounce back from the price corrections because we were the first to fall compared to those that are still in the early stages of downward market correction namely Sydney and Melbourne."

"Since the Banking Royal Commission “the pressure” seems to be upon those with the highest exposure to debt - mostly investors with multiple mortgages as the swift change in market conditions eroded equity. There is no shortage of buyers out there willing to swoop on anything that is priced appealingly."

Related reading:

Darwin's downturn holds silver lining for first home buyers

First home buyer? Why you should be considering the Northern Territory

REINT's Quentin Kilian calls on government to address $1.2b property sales plunge in Northern Territory