UDIA Victoria Media Release
The Victorian Division of the Urban Development Institute of Australia (UDIA Victoria) welcomes Federal Government’s Housing and Construction Stimulus Package but flags the need for the Victorian Government to release a complimentary package more relevant to the state’s new house and apartment market.
“It’s a great start but the Andrews Government will have to fill in the gaps for this to have the desired impact for Victorians. Stamp duty relief, targeted stimulus for the townhouse and apartment market and a focus on social and affordable housing are the big gaps,” said CEO of UDIA Victoria, Danni Hunter.
UDIA Victoria is concerned that confusion around how this package applies to the townhouse and apartment market may cause issues for industry and buyers alike.
“The timeframe and builder contract requirements basically exclude off-the-plan apartment sales and many townhouse developments. Six months is a very tight timeframe to commence construction for an off-the-plan apartment or townhouse development in this climate. The Victorian Government will need to consider how they stimulate that part of the market while mitigating risk for buyers and industry,” said Ms Hunter.
“The economic multiplier of stamp duty relief and the construction activity that could be stimulated by a State Government incentive package, is where government needs to focus in the medium term,” she said.
“This package is good news for the house and land sector, however Victorians will not benefit as greatly as those in other states and territories because our market is more expensive.”
The package appears to target titled or near titled land stock. “It will be important that state and local approval authorities such as utility companies, council engineering departments and Land Use Victoria work extra diligently in the coming six months to make sure lots are titled as soon as possible, and purchasers can commence building works within the timeframe to receive the grant,” Ms Hunter said.
UDIA Victoria’s research partner RPM Real Estate Group estimates that in Victoria, there are currently 2,700 titled lots, with another 3,500 that could title between now and the end of the year. This equates to an estimated 6,200 dwellings that could be eligible through the pipeline for this grant program.
Housing is one of the first industries to receive a dedicated stimulus package.
“We commend the Federal Government on hearing our calls and recognising the industry’s vital contribution to jobs, the economy, and communities right around the country,” said Ms Hunter.
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Engagement and Communications Manager, UDIA Victoria
T: 03 9832 9600
M: 0478 415 105