Media Release Begins
Urban Development Institute of Victoria (UDIA VIC) today urged the Victorian Government to improve conditions for investors to improve the viability of medium and high-density projects in Central Melbourne and the established suburbs.
A new report released by Infrastructure Victoria today outlines different growth models throughout Victoria.
UDIA VIC’s Chief Executive Officer Linda Allison says the report demonstrates the need for greater density, which is also recognised in the Victorian Government’s recently released Housing Statement.
“The Government has a long-held policy of delivering 70 per cent of all new homes in established areas, and the Housing Statement has reiterated the government’s commitment to this target,” she said.
UDIA VIC has called on the Victorian Government to do more to improve conditions for the housing sector as investor and buyer confidence reaches record lows. By reforming taxes that disincentivise new medium-to-high-density development and restoring incentives such as off-the-plan concessions, the Government can unlock new housing opportunities closer to major job and activity centres.
“Taxes currently comprise around 40 per cent of the price of a new home or apartment. We are calling for a review of the impact of taxes such as the foreign purchaser additional duty, which acts as a brake on overseas financial institutions investing in Victoria. This disincentive means they simply look elsewhere,” she said.
Ms Allison also cautioned against the assumption that if given the choice, people will not look to the growth areas as their preferred place to live.
“We know that many Victorians look to our newer suburbs for affordability and a lifestyle that medium-density development cannot offer.
“Many people still dream of owning their own home on their own block. This is true in both metropolitan Melbourne and in the regions, Ms Allison said.
Ms Allison urged the Victorian Government to ensure a strong supply across all housing markets across Victoria to help meet their target of 80,000 homes per year, and to improve affordability.
“People should be able to live where they want to and in the type of homes they want. Our newer suburbs offer affordability, community, and lifestyle. The key challenge will be to make the established areas of Melbourne more affordable – the way to do that is to increase supply.” she said.
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UDIA Victoria: Linda Allison, CEO