The latest Procore/Property Council Industry Sentiment Survey shows:
- Victoria's property sector sentiment is the lowest in the nation and 24 points behind the national average - the widest gap ever recorded for Victoria.
- Victoria's confidence in government planning and growth management is the lowest in the nation at -65 points.
Furthermore, more than 65 per cent of respondents identify the Allan Labor Government's property taxes as greatest barrier to further development.
The sentiment results follow the Property Council's Attracting International Capital report, which reveals a 53 per cent fall in foreign investment in Victorian property over three years.
Victoria was also the only state to record a decline in forward work schedules, signalling weaker construction pipelines and fewer projects ahead.
Under Labor, Victoria has the highest property taxes in the nation, as net debt continues to grow by more than $1.7 million an hour and is expected to reach a record $192.6 billion by 2028-29.
Leader of the Opposition, Jess Wilson, said: "Under Labor, confidence in Victoria's property sector has crashed to a new low.
"With the highest debt, highest taxes, highest unemployment and least competitive business conditions, is it any wonder why the phrase 'anywhere but Melbourne' runs rampant through boardrooms?
"As Victoria's alternative Premier, my first priority is to get the budget back under control so we can lower cost-of-living pressures on Victorians and declare Victoria is back open for business."
Shadow Minister for Housing and Building, David Southwick, said: "Confidence has collapsed because Labor's high taxes and waste are shutting investment out of Victoria. When businesses lose confidence, fewer homes get built and families pay the price.
"The cost of building a home in Victoria, combined with the state's crippling tax burden, is stopping many projects before they even begin. When 43 per cent of a new home is tax, young families have no chance of getting ahead.
"Investors are walking away because Victoria is drowning in red tape and delays. Every extra permit, every extra hurdle and every month of delay adds cost - and that cost lands on first home buyers and local employers."
