Property industry calls for demand-side stimulus

Victoria’s largest industry has labelled next week’s State Budget as the most important in the state’s history.

Property Council Victorian Interim Executive Director, Matthew Kandelaars, is urging the Andrews Government to use the Budget to provide the sector with strong demand-side support.

“We’ve currently got 230,000 Victorians out of work, and the property sector is seeking bold new settings which unlock investment and supercharge job creation,” Mr Kandelaars said.

“2020 is not the year to be timid with the State Budget.”

“Industry needs the removal of long-standing barriers to investment and a once-in-a-generation stimulus.”

The Property Council has proposed a housing construction ‘economic kickstart’ package which would see a short-term tripling of the First Home Owners grant for new dwellings, an expansion of the pension duty exemption, and a $20,000 new home buyer grant.

“Industry’s proposed stimulus would unlock $6.1 billion of private sector investment, creating nearly 79,000 jobs,” Mr Kandelaars said.

“Stimulating the construction of new homes, apartments and retirement living units is one of the most powerful ways to create new jobs and pull Victoria out of recession.”

The Property Council has also proposed further taxation and planning concessions to foster the growth of ‘Build-to-Rent’ projects in Victoria.

“By making some fairly minor changes, the State Government can enable the Victorian industry to pioneer the Build-to-Rent asset class in Australia.”

“Without targeted support from the State Government, Victoria’s property sector will face significant market challenges over the next two years,” Mr Kandelaars warned.

The Victorian State Budget will be handed down on Tuesday 24 November.