Greens’ balance of power a threat to housing affordability

The Property Council of Australia has warned that housing affordability in Victoria will come under threat if the Greens hold the balance of power after Saturday’s Victorian election. 

The Greens’ housing policies are unaffordable, unworkable or already outperformed by existing standards.

Modelling prepared by the Property Council, using industry estimates, shows that the Greens’ policies combined have the potential to increase the price of a one-bedroom apartment by over $50,000, or to increase a weekly rent by $50. The policy to introduce mandatory minimum apartment sizes, alone, has the potential to increase the price of a one-bedroom apartment by over $26,000.

Victorian Executive Director, Cressida Wall, said that the Greens’ policies are based on a fundamental misunderstanding of the Victorian housing market. 

“The Greens’ tinkering will actually hurt the people they want to help, destroying their capacity to own or rent,” said Ms Wall.

Other policies – such as requiring all new commercial developments to meet an 8 NatHers Star rating – make no sense, given there is no such thing as an 8 Star rating for commercial developments. Making this compulsory, as the Greens propose, will stop commercial development overnight. 

“At a time when Melbourne’s commercial vacancy rates are at all-time lows, the Greens’ policies will raise commercial rents and drive jobs from Victoria to competing markets like Sydney and Brisbane,” Ms Wall said.  

The best way to ensure a liveable and prosperous Victoria over the next term is to elect a stable, majority Government, capable of delivering genuine reform. 

“A party that aspires to hold the balance of power needs to be held to account and the impact of its policies must withstand scrutiny. The Greens’ policies fail miserably,” said Ms Wall. 

Media contact: Cressida Wall | M 0415 831 603 | E cwall@propertycouncil.com.au