Victorian Executive Director Cath Evans said that escalating costs – including infrastructure contributions, taxes, construction costs and financing – are making it increasingly difficult for apartment developments to proceed.
“If Victoria is serious about delivering more homes, we need policies that make apartment projects stack up again. That should start with the abolition of the Absentee Owner Surcharge on investors and the removal of Windfall Gains Tax,” she said.
“The latest ABS figures show the apartment pipeline is contracting. That’s why government should be focused on removing barriers to housing supply, not introducing additional costs that risk pushing more projects below the viability line.
Ms Evans noted the Carroll Government has the opportunity to rethink its planned new infrastructure contributions regime, which will add further charges to new developments in activity centres and Suburban Rail Loop precincts.
“Infrastructure contributions must be fair, transparent and proportionate. If they become another barrier to investment, the result will simply be fewer apartments and a worsening housing shortage,” she said.
“High-density developments are critical to accommodating population growth in established suburbs and around transport hubs. Yet, the numbers suggest developers are continuing to delay or shelve projects amid challenging market conditions.
“Victoria cannot build its way out of the housing shortage if it continues to tax investment out of the market. Restoring confidence and making projects financially viable again is essential if we want to see cranes return to the skyline.”
