The Real Estate Institute of Victoria (REIV) has submitted its recommendations to the Parliament of Victoria’s inquiry into housing supply in regional Victoria, highlighting the urgent need for property tax reform to address ongoing supply challenges.
Developed in consultation with regional real estate agents, the submission identifies key factors constraining regional housing supply:
Property taxation (77%)
High development costs (74%)
Complex and delayed planning and zoning processes (66%)
Inadequate infrastructure (37%)
REIV CEO Kelly Ryan emphasised the widening gap between housing supply and demand, which has driven significant price growth, particularly over the past five years.
“Regional Victoria has always been a fantastic place to live, and rising demand has only reinforced its appeal. However, this increased demand has also placed upward pressure on property prices for both buyers and renters,” Ms. Ryan said.
Regional real estate agents, who are on the front lines of the housing market, have identified several critical concerns:
High land taxes discourage investment, reducing rental stock and driving up rental prices.
Rising construction costs are significantly impacting both development feasibility and housing affordability.
Rental legislation and regulations require urgent reform to restore investment viability and ensure a fair balance between renters and rental providers.
Current regional housing stock is not meeting market demand, and planning processes must be streamlined to reflect real-world market conditions.
“The REIV has long advocated for taxation and regulatory reforms to boost and stabilise housing supply,” Ms. Ryan added. “This inquiry presents a crucial opportunity for a bipartisan approach to addressing these challenges, not only in regional Victoria but across the state. We look forward to the report’s findings and continuing discussions on much-needed reforms.”
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Media Contact: media@reiv.com.au 03 9205 6607