UDIA Victoria Says Bittersweet Day For Property Industry

The Victorian chapter of the Urban Development Institute of Australia (UDIA VIC) today welcomed the Victorian State Government’s plans to increase land supply in Melbourne’s growth corridor, despite the Reserve Bank of Australia’s (RBA) decision to increase interest rates by 2.5 percent.

Formally announced at the opening of the UDIA’s welcome address at its annual national congress, the Victorian Premier Hon. John Brumby addressed hundreds of urban developers and associated industry people at the Crown Casino today.

A bittersweet day for the property industry, UDIA (Vic) CEO Tony De Domenico said the double whammy announcement was a juxtaposition of news for the people of Australia and Victoria.

“ While we rejoice at our long campaign for the Urban Growth Corridor to be reviewed, the news of another rate increase to 7.5 percent will have a negative impact on the Australian housing and land development industry as a whole.

“ The Premier’s well timed announcement, however, of the increasing of zoned land within Melbourne’s UGB, in five significant growth corridors in the outer west, north and north east, will provide some relief to rising land prices.

“ While the hiking interest rate rises will deter many first home buyers from the market, the increased amount of developable land within the growth corridor is positive news to ensure land supply keeps up with demand helping to ease a land shortage concern and its effect on affordability.
 
“ The industry has been calling for alternative solutions to rate increases to deal with the rising inflation for some time now and while it may be falling on deaf ears at a federal level, it’s encouraging to see the Victorian State Government seeking to resolve our housing crisis across Melbourne.

“ There is little question that times are getting tougher for first home buyers and affordability is a growing concern with rental prices, stress on mortgage repayments and lack of affordable housing stock compounding the problem.

“ Today’s announcement by the Premier will go some way to easing that effect in Melbourne, but other states need to follow suit and look to their own back yard in an effort to ease pressure on housing affordability,” Mr De Domenico said.

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