Victoria has extended its off-the-plan stamp duty concession for another year, as new research and market data point to a widening gap between Melbourne’s housing performance and other capital cities, alongside rising competition in regional markets.
Premier Jacinta Allan said the extension would allow buyers of apartments, units and townhouses to deduct outstanding construction costs when calculating duty, with average savings estimated at $30,000 per purchaser. The measure is intended to support housing construction and reduce upfront costs at a time of ongoing supply pressure.
The policy move comes as fresh analysis from the Property Investors Council of Australia shows Melbourne’s housing market has recorded the weakest growth among major capitals over recent years. The report finds dwelling values in Melbourne rose 3.5 per cent between 2022 and 2025, compared with stronger gains in Perth, Adelaide, Brisbane and Sydney.
Data in the report indicates Melbourne’s median dwelling value increased from $798,881 to $827,117 over the period, representing an average gain of $28,236 per property.
“Melburnians who own property are being shortchanged by this current Labor Government to the tune of hundreds of thousands of dollars, and according to the Government, they think that’s fine because it’s making housing more affordable.” said Ben Kingsley PICA’s Chair.
The report estimates property owners in Melbourne have missed out on between $98,000 and $590,000 per dwelling in unrealised gains when compared with growth rates in other capitals.
“Property owners expect and plan for most of their future wealth to come from the property they own. That’s why they borrow money and pay the interest cost to get into the market. If the State Government continues to manipulate the market, these Melburnians will be significantly worse off financially compared to their counterparts in other states.” Mr Kingsley said.
The report estimates property owners in Melbourne have missed out on between $98,000 and $590,000 per dwelling in unrealised gains when compared with growth rates in other capitals
The analysis links Melbourne’s performance to a mix of factors including tax settings, investor activity and broader economic conditions. It points to changes such as the COVID debt levy, expanded land taxes and rental reforms as contributing to reduced investor demand and increased selling activity.
“Under the current State Government’s approach, come retirement, when they go to downsize their property, they can kiss goodbye any financial windfall — there goes a lot of the financial security they planned for and of any dreams of a holiday apartment on the Gold Coast, a new car, caravan or both.” said Kingsley.
While Melbourne’s growth has slowed, activity in regional Victoria is showing a different pattern, with competition intensifying in key centres such as Bendigo and Ballarat.
New data from PropApp shows both cities are emerging as off-market hotspots, with demand continuing to exceed available listings. Bendigo recorded annual dwelling value growth of about 12.6 per cent, while Ballarat rose around 11.4 per cent over the past year.
“Both cities continue to operate in low-supply conditions, with total advertised stock sitting 20 per cent to 25 per cent below pre-COVID levels, and new listings struggling to keep pace with buyer enquiry,” PropApp Founder Zac Burd says.
Fresh data points to tightening conditions across regional Victoria, with Bendigo and Ballarat emerging as key off-market hotspots as demand continues to outstrip supply. Bendigo recorded annual dwelling value growth of about 12.6 per cent, while Ballarat rose around 11.4 per cent over the past year
“Both cities continue to operate in low-supply conditions, with total advertised stock sitting 20 per cent to 25 per cent below pre-COVID levels, and new listings struggling to keep pace with buyer enquiry,” PropApp Founder Zac Burd says.
He said homes in Bendigo are selling in roughly 25 days, with Ballarat averaging around 28 days, reflecting tighter market conditions.
“Regional Victoria has become one of the most fiercely contested markets in the country,” he says.
“Buyers in Bendigo and Ballarat are realising that if they wait for a property to hit the major portals, they’re already behind. Off-market opportunities are giving them a critical head start and, in many cases, they’re the only way to secure a property without entering a bidding war.”
Further demand is being driven by a mix of local buyers, relocators and returning investors, with off-market channels becoming a more common pathway to secure property in competitive areas.
“We’re seeing strong demand from local buyers, Melbourne movers and investors all competing for the same limited pool of quality homes,” Zac says.
“We expect off-market activity in Regional Victoria to continue rising through 2026 as competition remains strong and supply struggles to keep pace.”
The contrast between subdued growth in Melbourne and tighter conditions in regional centres comes as policymakers attempt to balance housing affordability, construction activity and investor participation across the state.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
