Property Council Victorian Executive Director Cath Evans said the updated targets promote a continued and clear pathway toward the delivery of much-needed housing supply in Victoria.
"The government's updated targets will inform urban growth and support Victoria's delivery of future housing," Ms Evans said.
"With ongoing high demand for housing, the government must continue to facilitate a robust and layered plan that promotes both infill and greenfield development.
"However, currently, many projects simply do not meet basic economic feasibility thresholds to enable them to proceed.
"Construction and capital costs remain high, and a shortage of labour, delays in approvals and high state taxes are all impacting project feasibility.
"It is critical for the government to provide the industry with much-needed tax relief in its May budget to attract the investment we need to deliver to the revised housing targets.
"We support the ambitious housing targets outlined today, however, without targeted relief to address the fundamental structural issues facing the property sector, it is impossible to see how these targets can be delivered.
"Our pre-budget tax submission presents a clear 7-point plan, calling on the government to urgently address restrictive taxes and implement bold economic reforms to attract investment back into Victoria."
The Property Council urges the government to adopt its 7-point plan into this year's state budget and looks forward to working with government on housing delivery initiatives.
