NSW stamp duty receipts set to fall for Treasurer Gladys Berejiklian

The NSW government is bracing for a slowdown in Sydney's property market, as Treasurer Gladys Berejiklian​ released the government's half-yearly budget review.

It shows the government expects a surplus of almost $4 billion this financial year.

But the review cautions about the continued strength of the property market.

Residential stamp duty increased by 19 per cent in 2014-15, and by 13.4 per cent in 2015-16.

The government has resisted calls to lower or reform stamp duty.

Laing+Simmons Managing Director Leanne Pilkington warns the revenue party may soon be over, as more and more people simply can’t afford to move.

"The exorbitant cost of stamp duty in NSW is the most significant barrier to the purchase of property in this state," Ms Pilkington says.

"This is because for many people it’s cheaper to stay put and renovate than move, reducing the amount of stock on the market, irrespective of the number of new developments springing up in certain areas.

“Stamp duty is one of the most significant influences on property price growth in NSW. It contributes to fewer listings, so transactional activity suffers, and the flow-on impacts are felt down the supply chain: household goods suppliers, homewares retailers, white goods manufacturers, the list goes on,” Ms Pilkington says.