Australian state's stamp duty plan welcomed

A halving of stamp duty on new-build homes worth less than AUD600,000 (GBP292,000) is likely to provide a major boost to the property sector in the Australian state of New South Wales, it has been predicted.

Worth an average AUD11,245 per home, the cut will help bolster investment in property across the state - which includes the country's largest city Sydney - and will in turn help stimulate home building, the state government's treasurer Eric Roozendaal has predicted.

Such a measure may tempt those thinking of buying property in Sydney or elsewhere in the state to consider a new house purchase and make the most of the saving available.

The city is likely to see its house prices rise by up to 19 per cent in the next three years, according to a report produced this week by BIS Schrapnel.

It's Residential Property Prospects report predicted that a combination of grant aid to first-time buyers in the near term and then low interest rates after that will help prices in major cities to boom.

It tipped Melbourne and Adelaide to also see large price rises.