Victoria's property sector has again recorded the lowest confidence levels in the country, as new data reveals deepening industry frustration with the State Government, despite its efforts to speed up planning, housing supply and economic growth.
The latest Property Council / Procore Industry Sentiment Survey shows the state's confidence index has dropped to 104 - a four-point decline since March and now 20 points below the national average of 124.
Victorian respondents report mostly negative views on the state government's performance, particularly planning and managing growth, which is the lowest nationally.
The majority of respondents say property taxes and charges are the most critical issue the Victorian Government must address, while expectations for economic growth also remain the worst in the state.
However, there are signs of resilience in the market. Victoria, along with the other states, recorded house price growth expectations above the historical average.
Property Council Victorian Executive Director Cath Evans said the results showed clear concern from an industry weighed down by increasing costs and uncertainty.
"The Victorian property sector continues to struggle under the most punishing land tax regime in the country, and this dip in confidence reflects that," Ms Evans said.
"Following the announcement of the Housing Statement, the government has had a focus on improving the planning environment, with the aim of speeding up housing delivery. However, this work has not yet translated into improved sentiment - and is unlikely to, until the broader tax burden eases and demand conditions improve.
"While the recent expansion of off-the-plan stamp duty exemptions was welcome, the State Budget missed the opportunity to deliver more meaningful tax relief and cut red tape.
"Still, there remains some cautious optimism moving forward. Long-term confidence in housing demand hasn't evaporated.
"If we can reduce the tax load and continue reforming the planning system, we'll be in a strong position to attract the investment needed to build the homes, workplaces and communities our state needs."
The Q2 2025 survey was conducted online between 3 June and 18 June 2025 and included 581 respondents.
