housing was long overdue and will help to reduce the stock shortage over the next few
Off the plan purchases offer significant opportunities but pricing these purchases is difficult
and unless priced correctly can lead to losses. The main thing to remember is that you
should not pay more and should, in fact, pay less than any purchase available for
completed new properties.
We believe that in NSW there is potentially a shortage of stock likely for the year of more
than 20,000 dwellings. This shortage will keep pressure on prices and rentals. The data
points to Sydney entering a new housing growth cycle and we are expecting growth that is
higher than the long term house price predictions growth over the next 12 months.
The comparative affordability of units is likely to maintain demand in this segment and
hence we believe that well positioned units in this segment may provide the best growth
potential. Unit sales volumes are now higher than house and land sales.
The New South Wales government reports that the NSW Budget has already returned to a
surplus. This is some two years earlier than was previously predicted. The forecast for the
period 2010-2011 is a surplus of $885 million.
They are intending to invest some $22.3 billion over the next four years in the
Metropolitan Plan which will see the commencement of some $4.5 billion in spending on
the Western Express and some 1,300 new buses being delivered, and the Dulwich Hill light
Of more important note for those of us involved in the housing market are the changes in
the stamp duty. To summarise:
All off-the-plan purchases of residential property will be exempted from stamp duty for the
next two years, up to $600,000;
A 25% stamp duty cut for new properties purchased after construction for the next two
A first home buyers benefit grant arrangement whereby a first home owner will be entitled
to up to $29,490 if they buy off the plan in the pre-construction stage; and
A zero stamp duty arrangement for the next two years for those over 65 where they sell
their existing home to down-size into a newly constructed home to the value of not more