Property market confidence in Victoria has rebounded for the first time in four quarters according to the ANZ/Property Council Confidence Survey released.
Despite the post federal election boost in confidence, the Property Council has cautioned that further leadership is required to ensure sufficient housing supply is able to meet the needs of all Victorians.
According to Victorian Executive Director, Cressida Wall, the bounce back in confidence is encouraging, but more government action is required to guarantee long-term housing supply and affordability.
“Industry confidence in Victoria has risen nearly 13 points from the last quarter, and whilst we are encouraged by early signs of market recovery, approvals on new residential property are down 25.09% compared with last year (2018). It is essential that we take long-term action to address continuing shortages in housing supply,” said Ms Wall.
With Melbourne’s population set to overtake Sydney for the first time in over a century by 2026, it is essential that rebounding confidence coincides with initiatives to stimulate new residential releases.
According to Ms Wall, “Unless the Government acts now to stimulate residential development, there may not be a sufficient supply of new homes available as buyers return to the market, causing prices to skyrocket.”
“The recent State Budget saw a suite of new and increased taxes which have placed additional pressures on investment. In addition, economic entitlement changes to stamp duty provisions have seen several residential and retirement projects placed at risk. All of these measures will dampen housing supply,” said Ms Wall.
Source: Property Council of Australia