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The market for real estate in Sydney and surrounding areas in the state has been a much reported topic throughout 2013.
High sale prices and strong auction clearance rates in the state have demonstrated the positive sentiment in the market and level of buyer activity.
However, recent information from the half-yearly budget review by the New South Wales government has shown just how strong the property market has been in the state this year.
Budget review 2013-14
NSW Treasurer Mike Baird said in a December 12 press release that the state recorded lower revenues from royalties, Commonwealth payments and weaker payroll tax. However, these losses were offset by "higher than expected transfer duties and GST payments", the statement read.
"We are now one of only two states to retain the AAA credit rating," Mr Baird said.
The budget result for 2013-14 is forecast to be a deficit of $2,546 million, but revenues are expected to be $46 million higher this year.
"They have been revised upwards for transfer duty ($168 million) associated with a stronger than expected pick up in the housing and commercial property markets," the budget review read.
Commenting on the budget review findings, Property Council of Australia NSW Executive Director Glenn Byres noted the property industry is currently one of the strongest areas in the state's economy.
"Another rise in stamp duty receipts confirms both housing production and commercial property transactions are on the up," said Mr Byres in a December 12 statement.
"But stamp duty is a volatile source of revenue and NSW needs to immune itself against sudden shifts in the market."
Mr Byres suggested the creation of a "simple, efficient and transparent planning system" will give the industry a more solid base.
A strong market
Real estate in Sydney has had a very strong performance over the last few months. After experiencing home value growth of 12.5 per cent for the year ending November, median dwelling prices have grown to reach $640,000, according to figures from the RP Data Home Value Index.
This has pushed Sydney to be one of the most expensive property markets in the country, followed closely by Melbourne, Canberra and Darwin.
At the same time, the Sydney property market has seen high buyer activity throughout the year, leading to a depletion in available housing stock. November figures from SQM Research show available houses for sale in Sydney are 13.4 per cent lower than a year ago.
However, there was a monthly increase of 12.8 per cent from October, possibly due to homeowners taking advantage of the great seasonal selling conditions before the Christmas period.
