A combination of stifling foreign investor surcharges, supply chain disruptions and rising development costs could deter much-needed investment at a critical time for industrial growth in the state, warns the Victorian property sector.
Between 2018 and 2050, Victoria's population is expected to grow from 6.5 million to 10.1 million, doubling the volume of freight that will need to move through our state's vast supply chains.
Property Council Victorian Executive Director Cath Evans says that Victoria stands at a critical juncture.
"Victoria has all the fundamentals for industrial growth - strong demand, access to freight corridors, and more affordable industrial land than other major Australian cities.
"But we're also seeing rising concern around foreign investment disincentives, land supply bottlenecks, and labour shortages that must be addressed now," she said.
"The Property Council is working closely with the government to provide greater certainty for the future of freight, logistics and industrial development.
"We're pleased that this has driven the Victorian Government's commitment to a long-term industrial land pipeline to be released soon.
"We need to reduce red tape, reign in foreign surcharges that are scaring off investment, and improve land servicing to get new developments up and running more quickly."
To combat these concerns, the Property Council is hosting a half-day summit in Melbourne to bring together developers, investors, government representatives, and logistics experts to unpack the opportunities and challenges shaping the future of industrial property in Victoria.
Property Council Industrial Summit Highlights:
The event will explore the intersection of policy, sustainability, infrastructure, and technology, offering practical strategies to future-proof developments while navigating regulatory and economic headwinds.
The program features an opening address by the Minister for Climate Action, Energy and Resources, the Hon Lily D'Ambrosio MP, alongside industry leaders from across property, logistics, and sustainability sectors.
Key topics include:
- Supply Chain Disruption & Infrastructure Needs - How geopolitical shifts and local transport constraints are reshaping development strategy.
- Environmental Regulation & Green Industrial Design - Navigating Victoria's tightening sustainability goals without sacrificing commercial viability.
- Investment Trends & Land Availability - Understanding how taxes, talent gaps, and costs are influencing capital flow into Victoria's industrial space.
- Urban Logistics & Last-Mile Delivery - Innovations to unlock greater efficiency in a congested, high-cost landscape.
"This is not just a property conversation-it's a state economic conversation. How we respond to these pressures will define whether Victoria continues to lead or starts to lag," Ms Evans said.
