Victorian Premier Jacinta Allan has announced a significant temporary expansion of stamp duty concessions for all off-the-plan apartments, units, and townhouses, effective immediately.

Under this new policy, all buyers can claim the concession regardless of price, provided the property is part of a strata subdivision.

Allan criticized the 'nimby-style' opposition from conservative politicians, arguing that such resistance hinders development and access to affordable housing for younger Victorians.

The initiative aims to increase the construction of apartments and townhouses, thereby providing more housing options for young people and families.

Treasurer Tim Pallas estimates that the changes will cost the government approximately $55 million while helping prospective buyers by increasing market stock.

Stamp duty will now be calculated based on land costs prior to construction, significantly reducing the tax burden; for instance, a $620,000 apartment's stamp duty could drop from $32,000 to just $4,000.

This uncapped concession could save buyers tens of thousands of dollars, with a potential saving of $28,000 for those purchasing a $620,000 apartment.

The initiative is part of a broader strategy to stimulate development and address the housing crisis, responding to pressures from builders due to rising interest rates.

Allan's announcement is part of a series of policy measures aimed at encouraging developers to build and providing affordable housing options for Victorians.

This policy aligns with the government's goal to improve affordable housing options, including plans to increase density in 50 inner-Melbourne areas.

Experts suggest that the reforms might shift demand from existing homes to new apartments, potentially benefiting developers.

Pallas indicated that this concession is a short-term measure during a challenging period for the housing sector, with more housing policy announcements expected soon.