High property taxes drag down Victoria’s market sentiment

The survey included 581 respondents, most of whom slammed the state’s property taxes as the most critical issue to dampen sentiment.

Property Council Victorian executive director, Cath Evans, said that despite the Victorian property market showing signs of resilience, the results highlighted concerns about the state’s taxes in the sector.

“The Victorian property sector continues to struggle under the most punishing land tax regime in the country, and this dip in confidence reflects that,” Evans said.

Over the last couple of years, the Allan government has introduced a series of tax reforms, including the Commercial and Industrial Property Tax, the Windfall Gains Tax, and the Foreign Purchaser Additional Duty, which have driven investors out the door.

Additionally, Evans said soaring costs and uncertainty are weighing down the property sector.

PCA said that, despite the government’s aim to streamline planning and accelerate housing delivery to meet its housing target, industry confidence remains low.

In total, the state aims to build an extra 800,000 homes over the next decade, which Evans said will be challenging to achieve without subsequent tax relief.

“While the recent expansion of off-the-plan stamp duty exemptions was welcome, the state budget missed the opportunity to deliver more meaningful tax relief and cut red tape.

“Still, there remains some cautious optimism moving forward. Long-term confidence in housing demand hasn’t evaporated.”

“If we can reduce the tax load and continue reforming the planning system, we’ll be in a strong position to attract the investment needed to build the homes, workplaces, and communities our state needs,” she concluded.

Tags:

• Victoria
• Council

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