Much more action is needed to stimulate an underperforming housing sector, the Housing Industry Association said Tuesday.

The leading industry association in the Australian residential building sector welcomed elements of the New South Wales state budget but said there is still much to be done.

“The announcement that limiting transfer duty exemptions to first home buyers purchasing only newly constructed homes (including ‘off the plan’) from 1 January 2012 is a positive step,” said David Bare, HIA's executive director in the state.

The stamp duty exemptions (Home Builders Bonus) announced in last year’s budget will remain in place until the end of the financial year, providing stamp duty concessions to "off the plan" purchases for all other new home buyers, but HIA is disappointed that these initiatives have not been made permanent or at least extended.

“We welcome the treasurer’s commitment to continue working closely with the housing industry to encourage growth. There is still much to be done,” Bare added.

Also released Tuesday is the NSW 2021 Plan, where the government has committed to facilitate the delivery of 25,000 new dwellings in Sydney per year.

“Whilst still well below the targets needed to meet underlying demand the commitment to targets is a positive move as it drives performance measurement and accountability,” said Bare.

Other positive measures in the budget that have previously been announced include:
• abolishing the Torrens Assurance Levy ad valorem on the registration of land transfers,
• extending the reduction in state Infrastructure contributions for six months,
• expanding the Home Builders Bonus for empty nesters aged 55 years and over,
• Landcom releasing 10,000 lots over the next 4 years in Western Sydney.