Property Council Victorian Executive Director Cath Evans said the standardisation of requirements for low-rise buildings would bring homes to market more quickly.
"Ambiguity in design standards can delay the planning process, as there is often no agreement on what constitutes good design outcomes," Ms Evans said.
"The establishment of a unified code for townhouses will provide clarity for the sector and facilitate more homes across Melbourne.
"However, without critical property tax reform, Victoria will struggle to attract the investment it needs to deliver future housing, despite today's introduction of the Townhouse Code."
The Property Council urges the government to adopt its 7-point plan into this year's state budget, which would provide targeted tax relief to address the fundamental structural issues facing the property sector.
"Our pre-budget tax submission calls for urgent tax reforms to drive investment, boost housing supply and stimulate the property market," said Ms Evans.
"This includes extending off-the-plan concessions beyond 12 months and expanding eligibility to non-strata townhouses and granting land tax exemptions for high density developments to drive investment and urban growth."
