Role of real estate reinforced as revenue records tumble

The recent budget highlighted the importance of real estate to the economy however a record-setting end to the financial year has reinforced the point: the property industry is the most important in the state – and it’s more important than it has ever been before, according to the Real Estate Institute of NSW (REINSW).

“A month ago, when the NSW Budget was handed down, it was clear the real estate industry was rescuing the economy. However new figures show that the rescue effort has been even more profound than first realised,” REINSW CEO Tim McKibbin says.

The latest NSW transfer duty data shows the number of dutiable transactions in June 2021 was 26,137, the highest number ever recorded in any month in Revenue NSW’s online recorded history.

This translated to the collection of $1,161,990,894 in revenue for the month – $370 million more than the Treasurer predicted. It was also the second highest amount of transfer duty revenue ever collected in any month in Revenue NSW’s online recorded history.

Perhaps most strikingly, the data shows total transfer duty revenue for the full financial year 2020- 21 was $9,748,371,524.

“It’s clear that the COVID recovery is being led by the real estate industry. This reinforces some obvious points,” says Mr McKibbin.

“First, the need for the NSW Government to work constructively with the industry is essential.

“Second, consumers must be able to have confidence in the way real estate is bought, sold and regulated, so they are empowered to proceed with their plans. The Property Services Council Bill 2021 will establish an environment to support precisely this outcome.

“The Bill, which has passed the Upper House and will be debated in the Lower House when Parliament is in a position to resume, will create a better environment for engagement between consumers, the industry and Government.

“It will promote the development of good policy to address issues before they cause consumers harm. It will also mean the state’s economic powerhouse will be overseen by a regulatory authority exclusively focused on the industry.”

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