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The Real Estate Institute of Victoria has welcomed the state government’s investments in road and rail infrastructure, which is set to drive growth in areas beyond Melbourne.
REIV CEO Gil King says the $4 billion investment in regional Victoria, including $1.45 billion for regional rail services, will increase buyer demand for homes across the state.
“Greater road and rail infrastructure will not only improve the desirability of regional Victoria, but will also result in higher property prices in these areas in the long-term,” Mr King said.
“We’re already seeing strong price growth in towns within commuting distance of Melbourne, especially in Geelong where the median house price is now $701,000.”
The REIV also supported the state government’s $1.9 billion road investment, which includes $700 million over four years to upgrade the M80 Ring Road and $300 million to build the Mordialloc bypass.
A further $879.5 million will be invested in public transport for metropolitan Melbourne, with eight additional train services on the Werribee line and new bus services for several outer suburbs.
“Improved transport services in Melbourne’s outer suburbs will drive continued buyer interest in these suburbs, which have experienced strong price growth in the past two quarters,” Mr King said.
“With estimated population growth of around 100,000 people each year, infrastructure investment in these new growth areas is essential.”
Other measures announced in the state budget include $2.9 billion for the health care system and $685 million for schools.
The government also announced changes to land tax valuations, which will now be conducted annually.
Mr King said the Andrews’ government should also consider reforming the land tax model, which contributed $2.5 billion to the state’s coffers in the last financial year alone.
"Land tax is a considerable issue in Victoria with investors across the property sector experiencing exorbitant increases,” he said.
“A percentage cap on annual increases is necessary to ensure the ongoing viability of property investment in this state.”
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