Property sector issues ‘wake-up call’ to Allan government over plummeting confidence

The Victorian property sector’s final 2025 report card for the Allan government has just arrived. It’s not good.

Victoria’s property industry has delivered its final report card to the Allan government for the year, with new data showing housing confidence remains at “extremely low levels”.

As both major parties gear up to win over first home buyers, the property sector has given the state government its worst rating for 2025 – further dividing Victoria from the rest of the nation.

Victoria has again recorded Australia’s lowest industry sentiment, plummeting to 99 points — 24 below the national average — with confidence in the state government’s planning and growth management also the country’s lowest at -65.3 points.

The property sector has given the state government its worst rating for 2025. Picture: Luis Enrique Ascui

This marks Victoria’s furthest fall below the national average, contrasting sharply with positive ratings in Queensland, Western Australia, and South Australia.

Property Council of Australia Victorian executive director Cath Evans said the state was consistently recording “extremely low levels of confidence” in the Allan government.

“The message from industry is clear – until confidence is restored, projects will stall, investment will move elsewhere, and Victorian households will pay the price,” she said.

“This should be a wake-up call to the government that urgent action and a new approach is needed to reinvigorate the sector.”

Property Council executive director Cath Evans says the state government must take urgent action. Picture: Property Council of Australia

The results come despite the Allan government spruiked “biggest overhaul of Victoria’s planning laws in decades” aimed at fast-tracking the approval of new home builds.

A government spokesman said the state was also building thousands more homes than other states.

More than 65 per cent of Victorian respondents, including property developers, consultants and managers, however, said the state’s tax regime was the number one issue halting further development.

Recent figures show taxpayers are expected to fork out an extra $1.7bn over the next four years – bringing forecasts to $47.9bn annually – with Treasurer Jaclyn Symes reporting the increase was largely due to better than expected revenue from the property sector, including stamp duty.

Intrapac Property chief executive Max Shifman, said the government needed to stop treating property development like its “personal cheque book” and start clearing planning backlogs and boosting funding in growth areas.

“Quit focusing on announcements and new processes, and just get stuff done,” he said.

“And roll out better infrastructure spending spread across Victoria.”

Intrapac Property chief executive Max Shifman says the state government needs to clear planning backlogs and boost funding in growth areas.

Director Research at Wingate Andrew Perkins said the government could bolster confidence by streamlining lengthy culture heritage and key infrastructure processes.

“Victoria’s residential development sector remains strong, particularly in greenfield areas, but confidence is constrained by delays in cultural heritage approvals, stormwater and infrastructure processes, and uncertainty around affordable housing obligations,” he said.

Opposition Leader Jess Wilson said confidence in Victoria’s property sector had “crashed to a new low” due to “record property taxes and continued financial mismanagement”.

But a Victorian government spokesman said Labor had “cut or reduced more than 65 taxes and charges” including slashing stamp duty for off the plan townhouses and apartments.