Stamp duty will be waived or reduced on many residential land and off-the-plan apartment purchases in the ACT.
It's the latest stimulus measure to be announced in a bid to kick-start an ailing property and construction sector.
The concessions - which the government expects will cost it about $10 million in lost revenue - will be available for about a year and will not apply to investment properties.
Industry groups have welcomed the lifeline but are also hoping the government will push through approvals for major private developments.
From Thursday, stamp duty for eventual owner-occupiers on new land single residential blocks will be reduced to zero.
Off-the-plan apartments and townhouses up to $500,000 will also incur no stamp duty, while those priced between $500,00 and $750,000 will have it reduced by $11,400.
The stamp duty concession will be in place for any eligible purchase in the ACT from June 4 this year until June 30 next year.
"These measures will save new home buyers thousands of dollars, whether they are entering the housing market for the first time, or looking to move," Chief Minister Andrew Barr said.
Under the concession, purchasers of an off-the-plan apartment/townhouse they will live in will save up to $11,400. A purchaser of a new single residential block in Taylor for $430,000 will save $9020.
ACT Property Council boss Adina Cirson said the announcement came at a critical time for the property and construction industry.
She was particularly pleased it targeted new apartments and townhouses.
"We've been calling for more to be done particularly in the residential housing market as we face some pretty grim times ahead in terms of the pipeline of projects coming up," she said.
But Ms Cirson said the government needed to push through approvals of major private residential developments to further stimulate the sector.
"This stimulus measure will create more demand but what's also important is these projects remain viable," she said.
"While things are good right now for our members, they can see the pipeline of work drying up before their eyes."
Master Builders ACT CEO Michael Hopkins welcomed the cuts to stamp duty.
"These measures will be a lifeline," he said.
"[They] will complement the announcements expected by the federal government and help support jobs for about 20,000 people working in the construction industry in the ACT.
"Our residential members have reported to us concerns about their future pipeline of work."
He also wants the government to invest in more social housing and support renovations, particularly for homeowners wanting to increase the energy efficiency of their homes.
The association has also called on the government to accelerate its major infrastructure planning.
The ACT government will also extend the pensioner duty concession scheme for one year, Mr Barr will announce on Thursday
The scheme provides a full or partial stamp duty concession to pensioners purchasing a property valued below the median property value. Stamp duty deferrals will also be extended to all pensioners, regardless of property value.
Mr Barr said further support for the industry would be announced in the coming weeks. This will include more support for community and social housing, and investment in government capital projects.
"The ACT's local construction industry employs and supports tens of thousands of Canberra families," he said.
"The ACT government has already announced payroll tax waivers for the construction industry, and further support will be announced in the coming weeks as part of Canberra's Recovery Plan."
The announcement came after a $6 million rescue package for Canberra's struggling hospitality industry was announced last week.