He noted the state's economic output has grown by 44 per cent since 2010, yet productivity growth of just 0.8 per cent per year continues to lag behind the national average of 1 per cent and trails leading OECD economies.
Growth has been driven largely by population. Meanwhile, job creation has been concentrated in sectors such as healthcare that support living standards but generate limited export growth. Higher-value industries that drive innovation, exports and long-term prosperity are not being supported at the scale required.
The Property Council is calling on the Victorian Government to prioritise productivity through:
- Unlocking employment and industrial land
- Streamlining planning and approvals
- Providing consistent, investment-ready regulation
- Backing innovation in construction, including modular and offsite delivery
Victorian Executive Director Cath Evans said improving productivity in the property sector starts with faster decision-making and reduced regulatory complexity.
"Victoria doesn't have a growth problem, it has a productivity problem, and government policy is at the centre of it.
"If we want to lift living standards, we need faster approvals, clearer regulation and a serious focus on enabling the sectors that actually drive economic output.
"Without that shift, we'll keep getting bigger, but not better off.
"Melbourne already has the foundations, with globally competitive precincts like Parkville and Cremorne showing what's possible when industries cluster and scale. But too often, these successes occur despite the system, not because of it.
"At the same time, workforce constraints and rising costs are putting pressure on delivery. Without reform, projects simply won't proceed and productivity will continue to stall."
