He warned that unless the new federal government can keep inflation in check, it might be one of several interest rate rises this year.
Despite a rising interest rate environment, St George research expects the number of new homes to start construction in Victoria to continue its upward spiral, as supply of land struggles to keep up with demand.
UDIA chief executive officer Tony De Domenico warned the announcement by the Brumby Government to lift the “maximum 50%” cap on land tax increases, will only result in these costs being passed by developers to home buyers.
The UDIA is a national association which promotes achieving sustainable urban development. It has lobbied against government imposed taxes – which can range up to $85,000 per block of land – saying it is contributing to the current housing affordability crisis.