The Property Council is pleased to publicly release our pre-budget submission to the Victorian Government in anticipation of the 2025-26 State Budget.
2024 has been one of the most challenging years for Victoria’s property industry, with economic pressures severely impacting the capacity to deliver new housing and commercial developments. Housing approvals have hit historic lows, industry confidence remains the weakest in the nation, and investment is increasingly flowing to other markets. Rising taxes, including the windfall gains tax and Absentee Owner Surcharge, coupled with policy instability, have created significant barriers for developers and investors.
While the reintroduction of expanded off-the-plan stamp duty concessions is a welcome step, much more is needed to rebuild confidence, attract investment, and boost housing supply. Over 12 months since the Victorian Government’s Housing Statement, the market requires deeper action to complement ongoing planning reforms and achieve meaningful results.
The Property Council’s 7-Point Plan outlined in our Pre-Budget Submission provides a clear roadmap to recovery. The plan includes targeted measures to restore market confidence, support developers, and encourage investment in critical housing sectors. Key recommendations include extending off-the-plan concessions, boosting the First Homeowner Grant, providing relief from restrictive taxes, and introducing tax incentives to bridge feasibility gaps.
By prioritising economic growth and aligning tax policy with the needs of the development industry, these initiatives have the potential to increase housing supply, create jobs, and alleviate Victoria’s housing affordability crisis. The Property Council calls on the Victorian Government to seize this opportunity to reset its economic strategy and deliver the recovery the state urgently needs
