The 50 percent reduction in stamp duty for newly built homes worth less than $600,000 in NSW has been extended for next six months.

The Premier, Kristina Keneally, extended the scheme till 30th June next year, as the scheme was ending on Thursday.

She added that New South Wales is most favorable place for the investors who are willing to spend up to $600,000.

On Monday, Ms. Keneally proclaimed that 1934 new homes worth more than $850 million had been built and sold under this HCAP scheme.

Under this scheme, the properties buyers had saved $14.8 million worth of money.

Only after consultation with industry and feed back from the community, Ms. Keneally has decided to extend this Housing Construction Acceleration Program (HCAP).

Though the Government has extended this scheme, it is still unable to determine the impact of this scheme on the prices of the houses.

Responding to some question Mr. Roozendaal said, "We believe the half-price stamp duty for newly constructed homes and investment properties is appropriate in these times".

He further added that the budget is strong enough to withstand this and it will also promote the housing construction sector.

Mr Roozendaal had not revealed government’s future plans for extension of this scheme beyond 30th June.