Media Release: Victorian Budget 2024-25: housing shortfall to continue

7 May 2024

, Media

Media Release Begins

UDIA Victoria says that the lack of taxation relief for industry in today’s budget is a missed opportunity and will continue to leave Victorians struggling to enter the housing market.

UDIA Victoria CEO Linda Allison said that while she recognised the Government’s challenging budget position, the state’s housing crisis demands a crisis response.

“The property industry is profoundly relieved there are no additional property taxes this year, after bearing the brunt of a decade of new taxes, however Victoria’s tax regime clips the ticket at every point in
the development process. The overall property tax take is up again.

“Tax reform is vital to seeing more apartments and townhouses coming out of the ground. If we want to deliver 70 per cent of future development in existing areas, tax reform is essential,” she said.
UDIA cautiously welcomed an additional $3 million in funding for the Victorian Planning Authority to potentially deliver more supply in new communities in Melbourne, but called for firm commitment to delivering additional land supply.

“The keys to improving affordability is to welcome investment and increase supply. Land supply researchers point to an expected upswing in demand in the greenfields, and yet there is no plan to meet
that demand. Existing supply will be absorbed in the next 12 months, and prices will ratchet up again because of the shortage,” she said.

Modelling by UDIA Victoria shows that unless the Government commits to more land supply in the greenfield market, there will be a shortfall of 80,000 homes over the next decade in this market alone – a
whole year’s worth of housing targets.

“The Government assures us that they are committed to delivering new homes in the growth areas but we are yet to see targets to reflect this.”

UDIA Victoria welcomed measures to moderate the pipeline of major infrastructure projects, the additional funding for the Victorian Homebuyer Fund, additional investment in TAFE and road upgrades.

UDIA Victoria is calling on the Government to introduce short-term tax relief and buyer incentives aimed at attracting investment, boosting consumer and investor confidence; and jumpstarting new housing


Linda Allison | CEO