The March 2025 edition of the Procore/Property Council Industry Sentiment Survey highlights that since December 2024, the Victorian Government's net performance index has collapsed from -40 to -54, an unprecedented low and 44 points below the state's historical average. A score of zero is considered neutral.
While Victoria's overall confidence increased to 108 points in March, off the back of a February interest rate cut, Victoria's industry confidence remains well below every other Australian jurisdiction. A score of 100 on the Confidence Index is considered neutral.
Property Council Victorian Executive Director Cath Evans said the government's taxation regime was gutting investment, worsening housing supply for Victorians.
"This new survey sounds alarm bells on Victoria's punitive property taxation environment, with 54 per cent of survey participants citing property taxes and charges as the most critical issue for the industry," Ms Evans said.
"Despite significant reform to help fast-track Victoria's planning process, the government's eye watering stream of taxes are putting a brake on project feasibility and delivery.
"These taxes aren't just killing off homes, they're crushing the feasibility of much needed new commercial projects that would generate new Victorian jobs.
"Feedback from 1,170 respondents outlines the industry is bracing for negative economic growth over the next 12 months."
Ms Evans also highlighted the Absentee Owner Surcharge and Foreign Purchaser Additional Duty, saying that its introduction and subsequent increases are draining industry's ability to secure much needed new investment capital.
"Since 2015, Victoria has lost out on 81,000 much-needed new homes and 90,000 jobs due to these regressive taxes," said Ms Evans.
"If the government wants to realise its Economic Growth Statement, we need to welcome international investment to Victoria that backs local developers to bring projects to life."
"With Victorian sentiment 17 points below the national average, our state's industry is in dire need of tax relief in next month's state budget," Ms Evans said.
"With strong population growth and more effective planning than many other states, we still have the chance to bring back investment quickly if the government provides a step change on property tax."
The Q1 2025 edition of the Procore/Property Council Survey was conducted online between 10 March and 25 March 2025 and included 1,170 respondents.
The results of the March 2025 survey can be found here.
