Real Estate Institute of NSW CEO (REINSW) Tim McKibbin has labelled the current rate of stamp duty "completely inappropriate" in the wake of figures showing the amounts paid throughout the state last year.

REINSW commissioned CoreLogic to provide housing data for the year up to October 2018, revealing the top 50 suburbs for stamp duty paid in the state.

The Sydney suburb of Mosman topped the list with a total stamp duty payment of $90,154,540 from 315 properties sold at a median sales price of $4,100,000.

Randwick was ranked second with stamp duty payment of $43,979,150 from 252 properties sold at a median price of $2,455,000.

Top 10 suburbs for stamp duty paid in NSW

1. Mosman - $90,154,540
2. Randwick - $43,979,150
3. Bellevue HIll - $42,252,860
4. Vaucluse - $39,814,080
5. Castle HIll - $36,264,810
6. Paddington - $32,873,155
7. Ryde - $32,059,820
8. Maroubra - $31,151,735
9. Chatswood - $30,621,315
10. Manly - $30,444,160

Mr McKibbin told WILLIAMS MEDIA the prospect of paying stamp duty on a property was leading people to question their options.

"You have to spend so much money for the privilege of buying a house," he said.

"Retirees might now elect to stay in their four-bedroom homes, rather than move to a property better suited to their requirements.

"Other people are also choosing to renovate their current properties, instead of throwing away money on a move."

The cost of stamp duty depends on the price of a sold property, which is then taxed at a specific rate.

There are seven brackets of stamp duty, with each bracket taxed at an increased rate. 

This means properties in areas with higher house prices and greater sales volumes will have a higher overall stamp duty figure.

Mr McKibbin said there needed to be a "realisation" from the government about the true impact of the tax on the property market.

"The reality of the situation is that if the government were to drop the rate of tax, there would be an increase in the number of property transactions, which in turn would make them more money," he said.

"They need to look for the sweet spot where the rate of tax won't deter people from transacting properties.

"At that level, you will get the maximum amount of transactions possible."

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