Developers, investors welcome fiscal fillip

It was also positive news for Australian real estate investment trusts exposed to residential property, in particular Australand, Stockland and Mirvac.

Analysts at Bank of America Merrill Lynch said the impact of first-home owner and new-home grants, plus the extension of the stamp-duty concession beyond this month, will benefit stocks in the 2013 financial year.

"It may also reduce Stockland's nervousness over the potential for another downgrade," they said.

The upgrade of transport routes and the acceleration of development approvals were seen as providing a much-needed boost to industrial and commercial property plans, particularly in the expanding western Sydney and Hills districts.

The NSW Treasurer, Mike Baird, allocated $112 million to the Department of Planning and Infrastructure to speed up the assessment of major projects, a move which had the potential to inject $55 billion into the state's economy.

The Minister for Planning and Infrastructure, Brad Hazzard, said $13 million was committed to accelerating the assessment of significant state developments, including the remaining development applications lodged under the now-repealed Part 3A of the Environmental Planning and Assessment Act.

A senior research analyst with CBRE, Monica Khamis, said the allocation of extra resources to the Department of Planning and Infrastructure should stimulate growth in the housing sector.

"The fast-tracking development applications will also allow new supply to reach the market faster, which should help address the housing shortfall in the city and assist with affordability," she said.

For hotel operators, the Minister for Tourism and Major Events, George Souris, said Destination NSW would receive $125 million each year for the next four years.

He said the funding would be used to help rebuild the state's economy by supporting tourism, business and major events.