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The Real Estate Institute of Victoria (REIV) has argued that the Victorian government’s “status quo” budget may be a blessing in disguise.
The Victorian government’s 2024–25 budget offered no new taxes or incentives for property owners, according to the REIV, leading the institute to characterise the budget as business-as-usual.
However, in the wake of what it described as a “steady flow” of new taxes on investors and home owners since 2021, the REIV stated that this year’s “status quo budget” was welcome news.
Jacob Caine, president of the REIV, stated: “The Allan government’s first budget offered nothing substantive for the property sector, which in some ways is a positive given the heavy lifting property owners have performed in recent years.”
At the same time, however, the REIV expressed disappointment that the 2024–25 budget did not reconfigure the state’s tax system to incentivise investors.
“In the midst of perhaps the most acute housing supply and affordability crisis this state has ever experienced, this is a missed opportunity,” said Caine.
As of March 2024, the median rental asking price in Melbourne was $570 per week, a 9.6 per cent increase on the year before.
In the institute’s pre-budget submission, the REIV recommended a number of strategies to “make owning and retaining a long-term rental property more attractive to investors”.
The REIV also claimed that attracting investors to Victoria’s property sector would be crucial if the government is to meet its aim of delivering 80,000 new homes per year, as specified in its Housing Statement.
“Victorians need from their government policies and initiatives that address the immediate housing needs of the community,” Caine said.
“Policies that encourage investment in property are essential for better utilisation of our existing housing ecosystem and can have a real and immediate impact on the housing crisis.
“Unfortunately, we didn’t see that in this budget,” Caine concluded.
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