The survey of 532 Property Council of Australia member organisations found industry confidence dropped over the last quarter, with the national Confidence Index falling 14 points to 106 points. A score of 100 is considered neutral.
The index also fell 14 points in Victoria to 90 points. This is the lowest score since the middle of COVID-19 lockdowns in September 2020 and the lowest score across the nation.
The Property Council’s Victorian Deputy Executive Director Andrew Lowcock said the results for Victoria are a serious cause for concern in the context of the ongoing housing crisis.
“The taxation and investment environment in Victoria is making it increasingly difficult for our members to obtain the financing to get projects out of the ground,” Mr Lowcock said.
“At the exact time we need to be accelerating progress toward our ambitious housing targets, we’re going backwards instead.
“Victorian members have a forward work expectation of 0.9 in terms of net balance over the next 12 months, while Queensland and South Australia lead with balances of 21 and 24, respectively. This highlights that the industry is anticipating very few new project commencements over the next year – with critical implications for new supply and affordability.
“The industry expectation for economic growth in Victoria is currently sitting at -43 index points, 37 index points below its average, and 58 index points below Western Australia.
“Our property professionals are now viewing market conditions in the same way they did during the middle of the state’s lockdowns.
“This should be an urgent wake up call for Victorian policy makers that a quicker and deeper response to the housing crisis is required, which needs to start with taxation incentives and relief that stimulates both supply and demand.
“Without action, the investment needed for new homes will not come to Victoria, but head to other parts of the country instead.
“With the State Government’s performance being rated at -40 index points, down from -32 in the last quarter, it is time for them to sit down with industry and discuss meaningful tax relief to boost confidence and get the pipeline of new homes moving,” Mr Lowcock said.
