The Real Estate Institute of Victoria (REIV) has welcomed the Victorian Government’s proposed Big Ideas in its “New Plan for Victoria” but highlighted the need for a broader range of housing options and innovative strategies to attract investment for the plan’s successful implementation.
In a submission based on feedback from its 7,000 members, the REIV made two key recommendations to refine the state-wide plan being developed by the Department of Transport and Planning.
Firstly, the REIV urged the government to ensure that “diverse housing needs are reflected in the plans,” noting that Victoria’s population has varied living preferences due to differences in demographics, cultural backgrounds, lifestyles, and budgets.
The institute stressed that these factors must be considered to ensure the plan’s real-world viability.
Secondly, the REIV called for innovation in attracting capital investment to fund the delivery of the planning initiatives.
The institute noted that “sustained capital investment from private markets” is essential for the long-term provision of housing supply.
It urged the government to explore property tax reform and the reduction of regulatory burdens to “incentivise investment in Victorian residential property.”
Kelly Ryan, Chief Executive Officer of the REIV, underscored the importance of these recommendations, stating, “During this important period of transition and growth in Victoria, the role of suitable and sufficient housing cannot be understated.
The proposed planning framework will shape Victoria’s housing scene for decades to come, so getting it right at the planning stage is critical.”
Ms Ryan said the REIV has taken a close look at the government’s plans, which are heavily focused on mid to high-density development in inner-city environments, rather than using as much green space as in the past.
“Based on feedback from our members, who are directly involved in understanding people’s property purchasing behaviours, we’re highlighting that not everyone wants to live in medium to high-density areas all the time.
Different groups have different needs. For example, families often prioritise being close to parks, open spaces, and schools, while older individuals might prefer proximity to hospitals.
First-time buyers might lean towards inner-city and high-density living.
“There isn’t a one-size-fits-all approach when it comes to housing. To maintain our status as a desirable place to live and work, we need to continue offering a variety of housing options that meet the diverse needs and wants of our population.”
Ms Ryan also pointed out the need for tax and regulatory reforms to attract the necessary investment.
“At a time where significant capital investment is needed to finance the delivery of new homes, many taxation and regulatory measures continue to have deleterious impacts on the housing market.
“It’s becoming less attractive for businesses to invest in Victoria due to the additional tax burdens in the state. Changes in foreign ownership taxes and similar regulations are also discouraging international companies from coming in and investing here.”
The REIV’s recommendations include a comprehensive review of stamp duty, retention of negative gearing, new tax incentives for property investors, and initiatives to reduce regulatory burdens.
“Our members are at the coalface, working with Victorians every day. We know that people’s housing preferences change over time. It is important that plans for the future reflect the diversity of our needs,” said Ms Ryan.
