20,000-home shortfall ‘deeply concerning’ says industry body
The Property Council of Australia has issued a bleak assessment of the Victorian Government’s housebuilding agenda two years on.
Published in 2023, Victoria’s Housing Statement set a bold target to build 80,000 new homes annually in the state over a decade.
Just 60,000 new homes were built in 2024, with the Property Council warning that the shortfall will continue through to 2029.
“Projections show no indications of major uptick, with apartment supply at an estimated shortfall of more than 20,000 dwellings through to 2029,” the peak industry association said on Friday.
Property Council of Australia Victorian executive director Cath Evans added that the housing crisis demands much more than planning documents and policy announcements.
“Victoria is growing at pace, and so is the housing crisis. We’re not just behind schedule, we’re off track,” said Evans. “Melbourne’s population is projected to grow faster than New York City’s over the next ten years.
“We welcomed the Housing Statement as an important step forward. But the results haven’t followed. The 20,000-home shortfall in just one year is deeply concerning. Unless further action is taken now, that gap will only widen.
“It’s been encouraging to see the government begin to tackle planning red tape and the performance of key referral authorities, and we look forward to more action on this in the future.
“But positive movement on planning reform isn’t enough on its own to translate planning documents into actual new homes for Victorians.”
Evans criticised the planned of increased taxes on property owners in Victoria, while welcoming the removal of Off-the-Plan Stamp Duty Exemptions for apartments, units and townhouses
“But this has not been enough to encourage significant change,” she added. “The sector urgently needs tax relief. Cut the foreign investment taxes killing much needed investment into Victorian property, level the playing field with other states and introduce smart incentives to elevate buyer and investor confidence.
“Only this, combined with the ongoing removal of red tape from the planning system, can give the property industry the best possible chance of meeting that much needed housing target.”
Victoria’s failure to meet housebuilding targets is at least in line with failures at the national level, where Labor’s plan to build 1.2 million new homes by 2029 has fallen sharply behind schedule.
