Media Release Begins

Improving the property tax conditions in Victoria could help boost both apartment supply and state revenue, according to a new report released by UDIA Victoria.
New research by URBIS for UDIA Victoria, Melbourne Apartment Market Conditions, forecasts that without major policy interventions such as reducing the Foreign Purchaser Additional Duty (FPAD) or expanding off the plan concessions, apartment supply in inner- and middle-Melbourne is set to halve compared to 2016-2021.

UDIA Victoria CEO Linda Allison says the projected apartment pipeline for Melbourne is a red flag for industry and government alike.

“In the five years to 2021, approximately 12,265 new apartments were built in the inner and middle ring annually – from 2022-2027, almost half that rate, just 6,780 new apartments are expected to be built per year. This is deeply concerning for industry and threatens the government’s aspirations to increase density in Melbourne,” said Ms Allison.
The report shows that Victoria’s apartment pipeline has fallen off a cliff with new taxes and other policy changes over the last decade. Halving the FPAD rate could boost supply and in turn be the catalyst for an additional $294 million in state revenue.

UDIA Victoria is calling for a commitment from the Victorian Government to address the state’s crippling tax regime.
“It is extremely challenging to deliver affordable apartments to market in Victoria, and the State’s high rate of taxation is partly to blame, said Ms Allison.

As a signatory to the Government’s Affordability Partnership, UDIA Victoria is calling on the government to work more closely with industry to find solutions to the housing crisis.
“The Government says it is pulling every lever available to improve housing affordability. Yet almost 12 months from the release of the Housing Statement, there have been more property taxes, not fewer. This report shows that reforming property tax could boost apartment supply and even deliver more tax revenue back to the state,” said Ms Allison.
The report highlights that there are around 35,000 live apartment permits that are not moving to the delivery phase.

“The evidence is clear – we need urgent tax relief to improve supply. The State’s housing crisis demands a crisis response and the time to act is now”, said Ms Allison.

-ENDS-

Download the media release here.

MEDIA CONTACTS AND REQUESTS FOR INTERVIEW:
Linda Allison | CEO
linda@udiavic.com.au