Victoria's confidence index now sits at 107 points, slightly up from the last survey in June, but still 17 points below the national average of 124.
The most pressing concern remains property taxes and charges, cited by 63 per cent of Victorian respondents - the highest level of tax concern recorded across any state. Economic growth expectations for Victoria also remain well below national levels.
Despite these challenges, signs of resilience remain. Confidence in housing price growth continues across all states, with Victoria included.
Property Council Victorian Deputy Executive Director Andrew Lowcock said the data confirms deep frustration within the industry.
"These results should signal to the Victorian Government that the property industry has had enough with government inaction on property taxes," Mr Lowcock said.
"The industry feels the government is not listening to its major concern - that Victoria continues to battle the most punishing regime in the country.
"Land tax escalation, foreign investor taxes, the paralysing windfall gains tax and the imminent congestion levy increase are all combining to make development far too hard.
"If the government wants to win back the support of a sector that contributes 12 per cent of Victoria's Gross State Product, it must start to offer genuine tax relief that turns new projects from 'no to go'.
"We need policy that attracts investment, not deters it. As it stands, Victoria is pushing away the economic growth it urgently needs to keep pace with a growing population."
"Still, despite the tax challenges, the industry remains cautiously optimistic about the long-term future. Housing demand remains strong, so if we can reduce the tax load and continue reforming the planning system, we can unlock the investment and housing supply Victoria urgently needs."
The Q3 2025 survey was conducted online between 25 August and 10 September 2025 and included 935 respondents
