As Victorians head to the polls on Saturday, three issues – infrastructure investment, planning controls and stable government – will influence the future of the property industry and the state, says Cressida Wall.
During the election campaign, the Property Council has championed five steps to a more liveable and prosperous Victoria:
- Accelerate housing supply and choice
- Drive an evidence-led infrastructure pipeline
- Remove politics from our planning system
- Unlock Melbourne’s capacity to support a 24/7 economy
- Improve the tax environment to welcome all investment.
Wall, the Property Council’s executive director in Victoria, says infrastructure has emerged as a key election issue. Both major parties have made billion-dollar election commitments, and whichever party emerges the victor, the spoils will go to the infrastructure budget.
“The Coalition has pursued an agenda around decentralisation and regional development, while the Labor Party plans to spread more major infrastructure around the suburbs,” Wall explains.
The Andrews Government has committed to a $50 billion, 90-kilometre suburban train loop which the Premier has
called “the biggest public transport project in Australia’s history”.
Opposition Leader Mathew Guy has pledged $19 billion for a regional high-speed rail plan to help decentralise the state and boost regional cities.
“It is terrific to see both parties make infrastructure a priority, as we need a solid, predictable pipeline of new infrastructure projects that are well integrated with planning and transport.
“Integration of planning and transport may not attract much attention during election campaigns, but it has a massive impact on people’s lives, and we look forward to it being prioritised by the incoming government.”
Keeping the cranes in the sky
On the issue of planning, the major parties have “divergent” views, Wall adds, with planning regulations introduced by the Labor Government putting a handbrake on development.
According to a new report by Urbis, commissioned by the Property Council, development has “ground to a halt” in the two years since the C270 controls were introduced. Just four new buildings – two commercial and two residential – have been approved in that time.
“This is not enough to meet demand. It can take up to seven years for a project to be completed. We will hit a complete trough in the CBD in the next few years, and the cranes that we see in the skylines today will not be there.”
In response to sustained lobbying from the Property Council, the Coalition has promised that “excesses and inflexibility in the planning controls will be reconsidered,” Wall adds. The Labor Party has not made such a commitment.
“We don’t want to throw out the standards, but we want the future government to knock off the rough edges. We will continue to talk with both parties about this issue.”
Stable leadership leads to good growth
The third issue is stable leadership, Wall adds. The Andrews Government needs to lose just one seat to the Greens and it won’t be able to govern in its own right.
“Our biggest concern is that we end up with a minority Greens Labor coalition, which would be disastrous for our industry, leading to an enormous amount of uncertainty.”
It would also be bad news for home buyers and renters, with the Greens’ plans to mandate apartment sizes (beyond existing liveability standards) and 8-star energy ratings “driving up prices for those who can least afford it”.
Property directly accounts for 12.4 per cent, or $45.1 billion, of Victoria’s gross state product, Wall adds, and more than one in four Victorians draw a wage from the property industry.
“Around one in four dollars in every household budget goes into property through mortgage or rent – so it’s part of everyone’s life, every day. How the election unfolds will have a significant impact on the property industry and on every Victorian.”