The Sydney property boom has resulted in a behemoth stamp duty windfall for deployment in the New South Wales State Budget.
And what a huge infrastructure boost it will be for the state over the coming years.
In 2013-14 the State Government collected a colossal additional $938 million in stamp, described in the budget papers as arising due to "a 35% increase in the residential property market".
This is great news for Sydney, and not just because the infrastructure capital works will upgrade Sydney into the world class global city and financial hub it deserves to be.
It will also be a huge boost for the harbour city because, as I discussed here, the multiplier effect that the government expenditure will have on the local economy will have dramatic "carry through effects", creating revenues and profits, employment growth, increasing consumption and economic activity.
Consequently, the total of building work done in the NSW economy should easily break to new highs in the coming years.
Total building work done in the state has already increased dramatically by 40% since March 2012 (click chart):
New South Wales is getting its economic act together while some of the less populous states are dying on their backsides, necessitating ongoing low interest rates from the central bank.
Notably, Western Sydney is set to be the eminent benefactor of infrastructure expenditure from the state budget and should thrive from the booming outlay.
As reported today by the Tele, just take a look at the infrastructure spend in the pipeline:
"Rail and road budget infrastructure spending included:
Read more here.