Victoria’s property sector records lowest confidence levels in Australia

Victoria’s property sector has recorded the lowest confidence levels in Australia, as the Allan government’s “punishing land tax regime” raises doubts over the state’s ability to build enough homes.

Hundreds of Victorian property developers, managers and agents have lashed the Allan government over its “punishing land tax regime” with industry confidence plummeting once again.

New data shows the state’s property sector has again recorded the lowest confidence levels in the country, as property figures raise serious doubt over the state’s ability to build enough homes to keep up with population growth under the current tax regime.

The latest Property Council and Procore industry sentiment survey shows the state’s confidence index has dropped four points since March to 104, and now sits 20 points below the national average.

Most of the 581 respondents, who were questioned between June 3 and 18, said property taxes and charges were the top issues.

Premier Jacinta Allan ‘punishing land tax regime’ has been slammed by the property industry. Picture: Josie Hayden

Property Council Victorian executive director Cath Evans said the industry was being weighed down by soaring costs and uncertainty.

“The Victorian property sector continues to struggle under the most punishing land tax regime in the country, and this dip in confidence reflects that,” Ms Evans said.

She noted that plans designed to speed up the delivery of housing and a pledge to build 800,000 homes over a decade had not given the industry any increased confidence.

“While the recent expansion of off-the-plan stamp duty exemptions was welcome, the state budget missed the opportunity to deliver more meaningful tax relief and cut red tape,” she said.

“Still, there remains some cautious optimism moving forward,” she added, saying long-term confidence in housing demand had not evaporated.

“If we can reduce the tax load and continue reforming the planning system, we’ll be in a strong position to attract the investment needed to build the homes, workplaces and communities our state needs.”

Originally published as Victoria’s property sector records lowest confidence levels in Australia