13,955 homes were built across Victoria between October and December 2024, an 8.8% decrease from the previous quarter, according to new seasonally adjusted data from the Australian Bureau of Statistics.
The December 2024 quarter saw Victoria's lowest number of dwelling completions since early 2023 and marks a downward trend with two consecutive quarters of decline.
Whilst just over 60,000 homes were built in the 2024 calendar year, we need to average more than 80,000 home completions each year until 2034 to reach the Victorian Government's Housing Statement targets.
Property Council Victorian Executive Director Cath Evans said that these targets will not be reached without action that addresses punitive taxes and investor flight.
"The Property Council's latest sentiment survey highlighted that the property industry's confidence in the Victorian Government's ability to plan and manage growth has collapsed to an all-time low," Ms Evans said.
"Today's data reveals that Victoria's dwelling completions are now going backwards - a clear sign that reinforces the industry's lack of confidence and feasibility to invest here.
"For as long as Victoria's cumulative tax burden remains, developers will move to more feasible markets interstate, and our housing targets will continue to slip further away," said Ms Evans.
A recent Property Council report highlighted the impact of the introduction and subsequent increases to the Absentee Owner Surcharge and Foreign Purchaser Additional Duty, which has drained 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.
"These lost homes aren't just numbers; they create additional pressure on housing affordability at a time when Victorians can least afford it.
"The government has a choice in the upcoming state budget - either continue to follow its taxation yellow-brick road or reset its approach and unleash Victoria's development potential through critical tax relief.
"Let's welcome back international investment, back local developers, and unlock Victoria's true housing and economic potential," said Ms Evans.
