Treasurer Daniel Mookhey says the Minns government’s first budget includes $13 billion in savings and focuses on public services and essential workers – but what impact will it have on the property market?

With NSW in the midst of a housing shortfall, residents are finding rents rising, interest rates climbing and home ownership rates falling as demand for social housing is at a record high.

With the housing shortfall a key focus of this budget, let’s take a look at how budget changes could potentially lead to changes in the NSW property market:

First Home Buyer Scheme Expansion

Also in the budget was a $1 billion expansion of the first home buyers’ scheme, designed to deliver the government’s election commitment of confronting the housing availability and affordability crisis.

This expansion would see five out of six home buyers not paying stamp duty, with 1000 first home buyers using the scheme to be fully exempt from paying stamp duty.

The expanded scheme will cost around $250 million more than the scrapped reforms of the former Perrottet government which allowed first home buyers to opt for property taxes instead of stamp duty.

Housing Shortfall

NSW has a projected shortfall of 134,000 over the next five years, with many advocates warning that this funding will not be enough to put a dent in the 56,000 strong social housing waitlist, with the Community Housing Industry Association calling for $6 billion to deliver more social housing properties to address this shortfall.

Housing Infrastructure Fund

There will also be a new $400 million Housing Infrastructure Fund that will be financed from money left over from more than 700 finished projects that have been funded through Restart NSW, created as a result of the proceeds of privatisation.

This funding will go towards building sewers, footpaths, streetlights, parks and schools in new suburbs, with $100 million set aside for regional NSW. This fund will also support infrastructure for infill housing.

$300 million towards “affordable” housing

Labor will also invest $300 million in the state-owned developer Landcom to deliver 3,288 market homes and an additional 1,409 affordable homes, as well as $60 million on publicly owned build-to-rent trials in the Northern Rivers and Illawarra-Shoalhaven areas. The time frame for delivery on these properties is out to 2039/2040.

The government will also build 3,100 affordable homes by 2028-29 as part of the National Housing Accord.

The $610 million Commonwealth Social Housing Accelerator program will also see $224 million put towards social and affordable housing, as well as an additional 1,500 social housing homes over the next four years. This package includes $70 million for social housing units in regional NSW and $35 million for housing of Indigenous people.

Wondering how the budget will impact your property decisions?

Get in touch with our team today. Together we’ll look at your property goals and how these changes could impact you.