Sydney house prices set to strengthen, says NSW government

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Sydney house prices set to strengthen, says NSW government
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The state's half-year budget review said three interest rate cuts by the Reserve Bank since June had a 'significant impact' on Sydney's property market, with home value indicators showing an 8 per cent jump in prices between mid-August and early December

The state's half-year budget review said three interest rate cuts by the Reserve Bank since June had a "significant impact" on Sydney's property market, with home value indicators showing an 8 per cent jump in prices between mid-August and early December.

A downturn in the Sydney property market between mid-2017 and mid-2019 weighed on household spending and contributed to slower growth in the state economy. The forecast for economic growth in NSW this financial year was revised down to 1.75 per cent, well below the 2.25 per cent predicted in the June state budget.But the budget review said the stronger than anticipated recovery in house prices would deliver an economy-wide boost.

One factor in the lower surplus is weaker than expected GST, which accounts for around a quarter of the state's revenue. The budget review lifted the state government's planned infrastructure spending over the next four years from $93 billion to $97.3 billion.

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