The politics of housing in Victoria have moved up a gear, with the Government defending its latest planning reforms as a path to greater choice and the Opposition warning that sentiment across the sector has slumped to worrying levels.
The Allan Government seized on comments from Liberal MP James Newbury in the Australian Financial Review, highlighting his description of new housing as “hideous” and “trashing the joint.” They linked those remarks to last month’s protest in Brighton and the Opposition’s vote this week against the Government’s planning changes. The Premier’s office characterised the Opposition position bluntly, stating that “Jess Wilson’s Liberals have shown themselves to be the party of NIMBYs and red tape.”
Labor points to its recent win in the Legislative Council, where its planning reforms secured support. The package aims to cut red tape, accelerate good developments and create more housing options closer to public transport. It ties in with broader reforms that include stamp duty cuts on off the plan homes, housing targets for every council and simpler approvals for townhouses, duplexes and subdivisions. As the Premier put it, “our new planning laws build on our bold housing reforms to give Victorians real housing choice.”
The argument rests on a simple promise: build more homes to make housing fairer for younger Victorians and workers who want to stay in their communities.
The Opposition argues the problem lies elsewhere. Jess Wilson’s team cites the new Procore and Property Council Industry Sentiment Survey, which places Victoria at the bottom of national rankings. The survey shows state sentiment sitting 24 points below the national average and records the lowest confidence in government planning and growth management, at minus 65 points. It also found that more than 65 per cent of respondents view state property taxes as the greatest barrier to development.
These figures arrive alongside a fall in foreign investment. The Property Council’s Attracting International Capital report notes a 53 per cent drop in international investment in Victorian property over the past three years. Victoria was the only state to record a decline in forward work schedules, adding fresh questions about the strength of future supply.
Jess Wilson sees these indicators as a verdict on the Government. “Under Labor, confidence in Victoria’s property sector has crashed to a new low,” she said. “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?” She added that her priority would be to restore the budget and lower cost pressures so Victoria could “declare Victoria is back open for business.”
Shadow Housing Minister David Southwick linked the sentiment data to broader concerns within the construction sector. “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,” he said. He pointed to the tax burden as a central issue. “When 43 per cent of a new home is tax, young families have no chance of getting ahead.” He added that delays and permitting requirements were discouraging investors. “Every extra permit, every extra hurdle and every month of delay adds cost and that cost lands on first home buyers and local employers.”
Between the two narratives lies a tension familiar to Victoria’s long housing debate. One side stresses speed and supply, the other sees deep structural problems that they say are holding the state back. Both use the language of affordability and opportunity, yet each places responsibility at the other’s feet.
The real measure will sit with the homes that do or do not get built over the next few years, the level of investment that remains or departs and the confidence of young families trying to enter the market. Victorian politics has turned the housing question into an argument about the state’s future direction, but its outcome will be felt most quietly in streets, suburbs and construction sites long before the next election decides who was right.
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