The aim of the plan, which will see stamp duty exemptions on houses and apartments priced up to $650,000 and discounts up to $800,000, was to make properties more affordable.

But the chief executive of the huge western suburbs agency Starr Partners, Doug Driscoll, said that because first home buyers will have bigger budgets next month, homeowners were wanting to capitalise.

His offices had already noted some sellers of homes priced around $650,000 and $800,000 were asking their agents to list their homes for slightly more.

“When first homebuyer grants were introduced a few years ago, as a group, we saw the same thing,” Mr Driscoll said.

“The market needs to find its natural level, otherwise these measures could prove counter-productive and possibly even lead to an artificial increase in prices.”

NSW buyers currently pay more in stamp duty than buyers from any other state.Source:istock

The head of research at CoreLogic, Tim Lawless, agreed the strategy could be “self defeating”.

Homes exempt from stamp duty would become hot real estate.

“It’s widely accepted that policies aimed at stimulating demand tend to push prices higher,” Mr Lawless said.

But he and other experts can see some positives in the Government’s move.

Apartments near Sydney’s CBD, such as West End at Glebe, are priced well above the $800,000 threshold for stamp duty discounts.Source:Supplied

Mr Lawless said that the increased demand from first homebuyers will fill the “hole” left by investors leaving the market and help new developments get off the ground.

Developers currently rely heavily on investors to get the number of pre-sales necessary for obtaining bank financing for their projects.

Property Council of NSW director Cheryl Thomas agreed this would be one of the first home buyer incentives strongest benefits.

“The key to solving Sydney’s housing affordability remains supply,” she said.

Buyers of houses sold at Sydney’s median price of $922,000 typically pay more than $36,000 in stamp duty upon purchase.Source:Supplied

“The city hasn’t been building enough housing for more than a decade and is only now starting to come close to the levels of housing needed to address population growth and the current 100,000 deficit in dwellings needed.”

Housing Industry Association senior economist Shane Garrett said Sydney’s middle- and inner-ring suburbs would be less impacted by the first homebuyer incentives.

Just 20 per cent of Sydney’s detached housing stock and 33 per cent of unit stock fall within the $650,000 price threshold for stamp duty exemptions.

No suburbs within a 25km radius of the CBD have a median house price under $650,000, while just 38 have median unit prices that fall into this category.

source：http://www.news.com.au/finance/real-estate/new-homebuyer-benefits-may-increase-property-demand-and-push-up-sydney-prices-even-more/news-story/19dc45c5f783725013e290d5bcb4c57b