Concerns over investment barriers emerge as state faces pivotal growth period
A combination of increased surcharges on foreign investors, ongoing supply chain issues, and higher development expenses may discourage essential investment in Victoria’s industrial property market, according to sector representatives.
Cath Evans (pictured right), executive director at the Property Council Victoria, said the state is at a turning point. “Victoria has all the fundamentals for industrial growth – strong demand, access to freight corridors, and more affordable industrial land than other major Australian cities.
“But we’re also seeing rising concern around foreign investment disincentives, land supply bottlenecks, and labour shortages that must be addressed now,” said Evans. “The Property Council is working closely with the government to provide greater certainty for the future of freight, logistics and industrial development.
“We’re pleased that this has driven the Victorian government’s commitment to a long-term industrial land pipeline to be released soon. We need to reduce red tape, reign in foreign surcharges that are scaring off investment, and improve land servicing to get new developments up and running more quickly.”
In response to these challenges, the Property Council is organising a half-day summit in Melbourne. The event aims to bring together developers, investors, government officials, and logistics specialists to examine the factors influencing the future of Victoria’s industrial property market.
The summit will address the relationship between policy, sustainability, infrastructure, and technology, with a focus on practical approaches to support development amid regulatory and economic pressures.
Key topics for discussion include the impact of supply chain disruption and infrastructure demands on development strategies, approaches to environmental regulation and sustainable industrial design in Victoria, trends in investment and land supply including the effects of taxation, workforce shortages, and rising costs, and innovations in urban logistics and last-mile delivery to improve efficiency in a congested environment.
“This is not just a property conversation – it’s a state economic conversation,” Evans said. “How we respond to these pressures will define whether Victoria continues to lead or starts to lag.”
Victoria’s population is projected to rise from 6.5 million in 2018 to 10.1 million by 2050, which will require the state’s freight capacity to double over the same period.
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