Developers have welcomed the Allan government’s stamp duty concession but say Melbourne apartment values must rise or projects will remain financially unviable.
Developers will be forced to pay a new charge to fund schools, parks and public transport with the state government set to trial the fee in the first 10 of its so-called activity centres, as it considers a universal model for all areas where new housing is built.on Monday that the Allan government’s bold plan to fast-track the building of new high-rise towers across the city may not be initially viable unless there is a substantial rise in the cost of apartments.
Meanwhile, Melbourne’s median home value has fallen from second to sixth out of Australia’s eight capital cities since the onset of the COVID-19 pandemic – and that slump is being blamed for driving investors away from Melbourne’s apartment market.Charter Keck Cramer national executive director of research Richard Temlett said Melbourne’s relatively low property prices meant many would-be apartment developments were financially unviable.
In its latest analysis, it found the government would need to build up to 25,000 apartments a year to meet its own target – but new apartments were much more expensive than established units, making them uncompetitive. Premier Jacinta Allan said communities that built more homes should get extra funding for the infrastructure they need.“Developers already build homes and opportunity, and many already contribute to a system like this – now we’ll work together to make the funding fairer, so growing areas get more support for schools, parks and transport.”
Developers on Monday also welcomed the stamp duty concession, which they have been pushing for since Labor released its housing statement late last year, but predicted it would have a modest impact on housing supply.Treasurer Tim Pallas on Monday said it was expected to cost Victoria about $55 million in tax revenue and had been limited to one year in anticipation of better economic times ahead.
James Pearce, a partner with prominent architecture practice Fender Katsalidis, said his developer clients were hopeful the stamp duty concessions would give prospective buyers more confidence. Fender Katsalidis is involved in several off-the-plan projects that could launch within the next 12 months, including the high-rise Atlas building in the CBD.
The new pilot levy model builds on Victoria’s current patchwork system of developer charges, which a review found to be inequitable, complex and failed to fund projects where homes are being built.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
After a year as premier, Jacinta Allan looks backJacinta Allan is still banking on Big Build projects to secure the state’s – and her party’s – future, despite the escalating debt.
Read more »
‘Head in the sand’: Allan government under fire after ‘scary’ surge in crimePremier Jacinta Allan has come under fire for failing to address Victoria’s surging levels of crime, with shadow police minister Brad Battin accusing the government of having its “head in the sand”.
Read more »
‘Huge potential for disaster’: Allan government slammed over wind farm fire dangerThe Allan government is facing calls to “immediately audit” Victoria’s 2,500 wind turbines, with alarms being raised about the huge fire risk they pose for regional communities.
Read more »
Vic Police powerless to stop October 7 rally as Allan govt defends ‘right to protest’Pro-Palestine rallies are set to go ahead in Melbourne this weekend, with Victoria Police revealing it is powerless to prevent rallies being held October 7.
Read more »
‘Chaos’: Jacinta Allan ruthlessly weighs into Liberal leadership speculationVictorian Premier Jacinta Allan has seized on reports of a possible Liberal Party leadership challenge by claiming the opposition party is engulfed by chaos and disunity.
Read more »
Paedophile Allan Huggins sentenced to 28 years in prison for child sexual offencesPaedophile Allan Huggins will be eligible for parole at the age of 93 in 2040 following his sentence in Sydney today for sexually abusing students, but his victims say they hope he rots in jail.
Read more »