The Property Council of Australia (Victorian Division) has issued a warning that land supply is only part of the solution to Melbourne’s increasing population growth.
The Property Council welcomes the Premier’s announcement of the Urban Growth Zone but stresses that housing affordability needs to be tackled from a number of fronts.
“Rezoning land within the Urban Growth Boundary for residential development is only part of the solution to Melbourne’s housing affordability crisis,” said Ms Cunich, Executive Director, Victoria.
“The new UGZ only factors in 10 years supply of zoned land. We believe there needs to be at least 15 years zoned supply and identification, zoning and development of sites for employment, so people can work close to home,” said Ms Cunich.
The Property Council has been lobbying the Government to encourage new housing closer to existing infrastructure in Melbourne’s suburbs.
“Melbourne 2030 has had 10 years ripped out of it. Melbourne’s population will top 6.2 million by 2020, a decade earlier than the Government previously estimated.
“If Melbourne 2030 is to succeed drastic measures are needed to be taken to maintain livability in Melbourne,” said Ms Cunich.
“It is essential that we get activity in our activity centres. We must have choices for those who would prefer to live closer to the CBD, and not on the urban fringe,” said Ms Cunich.
“It’s a matter of providing choice”.
Ms Cunich said that there is more to the problem than rezoning land and consideration also needs to be given to tax arrangements, public transport, infrastructure and infill development.
“The Government faces major issues over the next few years and it is hoped the Government will address them head on.
The current land tax and stamp duty rates in Victoria are hurting housing affordability.
“25 percent of the cost of new home in Melbourne is Government taxes and charges. This is a major part of the affordability equation.
Rezoning land for residential development is only part of the solution to Melbourne’s population boom.
Increasing infrastructure, creating a competitive tax environment and encouraging development in infill areas are all part of implementing the strategic plan for Melbourne. For further comments please contact:
Rachel Saunders, Public Affairs Manager, 9664 4230 or 0408 544 788