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NSW homeowner grants increase 11 per cent

AAP logoAAP 10/08/2016 Anna Hitchings

New homeowners are on the rise in NSW with latest figures showing an 11 per cent increase in first homeowner grants over the last financial year.

The NSW government made the announcement on Thursday with Treasurer Gladys Berejiklian attributing the rise to an increase in supply in houses and apartments.

"We have consistently said that supply is the key to putting downward pressure on prices," she said.

"Our policies to encourage the construction of new homes are clearly bearing fruit, with residential building approvals soaring by 10.5 per cent over 2015-16."

There were about 900 more first homeowner grants issued in the last financial year than the previous year, with the dollar value of the grants rising by 12 per cent to $138 million, Ms Berejiklian said.

"This is by far the strongest result among the states, with more than 70,000 NSW homes given the green light for construction last financial year."

The first homeowner grant scheme aims to encourage increased housing supply, with $10,000 provided towards the construction or purchase of newly-built homes valued up to $750,000.

Eligible purchasers buying a vacant block of residential land to build their first home are also not required to pay stamp duty on land valued up to $350,000.

Stamp duty concessions are awarded for land valued between $350,000 and $450,000.

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