The Allan Labor Government's failure to tackle Victoria's housing crisis has been exposed yet again, with the latest Property Council industry survey and Australian Bureau of Statistics (ABS) building approvals data confirming that confidence in the sector is collapsing and housing supply is plummeting.
Victoria's property industry confidence has dropped to just 104, twenty points below the national average of 124, and remains the lowest in the country. At the same time, ABS figures released this week show that dwelling approvals have fallen off a cliff - down 23 per cent in the last quarter alone and 30 per cent lower than a decade ago.
Shadow Minister for Planning and Housing, Richard Riordan, said the ABS data and Property Council survey painted a damning picture of Labor's failure to deliver homes.
"After 11 years of Labor, housing starts are at crisis levels, approvals have collapsed, and confidence in Victoria is the worst in the country," Mr Riordan said.
"New building approvals have fallen by nearly a quarter in just one quarter and are down nearly a third compared to ten years ago. This is not a slump - it's a collapse of confidence in Victoria's ability to deliver housing.
"More than 40 per cent of the price of a new home is now government taxes and charges. Developers are pulling out of Victoria, young families are being locked out of home ownership, and renters are facing skyrocketing costs because this government has made it impossible to build homes here."
The Property Council's own Victorian Executive Director, Cath Evans, has warned that the property sector "continues to struggle under the most punishing land tax regime in the country" and that Labor's planning initiatives have "not yet translated into improved sentiment."
Mr Riordan said Labor's failures were evident in both the promises they make and the reality on the ground.
"This government is out of touch, out of ideas, and out of time. They talk a big game about activity centres and housing targets, but the results speak for themselves - record low confidence, collapsing approvals, and an ever-worsening shortage," he said.
According to the Property Council's June quarter data:
- Victoria's confidence index fell to 104, down four points since March.
- Victoria ranks lowest in the country for confidence in the state government's ability to plan and manage growth.
- Property taxes and charges remain the top concern for the property sector.
And according to the ABS (May 2025):
- New dwelling approvals in Victoria fell 23 per cent in the last quarter.
- Private-sector approvals fell 24 per cent in the same period.
- Approvals today are down nearly 30 per cent compared to a decade ago.
- The value of approved residential work also dropped six per cent in the last quarter.
"Victorians deserve a government that listens to the experts and the industry - not one that drives investment away and shuts families out of the market," Mr Riordan said.
"The Liberal Nationals are ready to work with the sector to deliver the homes Victoria needs by cutting taxes, slashing red tape, and getting government out of the way."
