Last week’s federal budget delivery has generated more public commentary than any in recent memory, and regardless of where you sit on the political spectrum, the sentiment among property owners and investors is clear: there is growing frustration with policy settings that penalise those who work hard, save and plan for a future that is not dependent on government support.
From a market perspective, we see little immediate change as a result of the budget. Activity remains steady, and buyers are focused and engaged. But the longer-term signals are harder to ignore. Policy settings that discourage property investment will only deepen the rental crisis, which is already particularly affecting low-income workers, students, and some of our most vulnerable communities. In Victoria, existing property taxes and an increasingly complex regulatory environment have already reduced the incentive to invest, and further deterrents will compound a worsening supply problem.
The key takeaway for property owners is this: the family home remains the last true bastion of capital growth in Australian real estate. We expect to see more homeowners treating their principal residence not only as a place to live, but as a long-term investment, and rightly so.
Australia's population continues to grow, and Victoria is no exception. In the long run, property values will rise because supply simply cannot keep pace with demand. The barriers to new supply are well documented: too many layers of government approval, rising construction costs and an inflationary environment that, paired with interest rates among the highest in the Organisation for Economic Co-operation and Development, makes delivering new housing more difficult and more expensive with every passing year.
Despite the noise, the foundations of our market are strong, and the outlook for well-positioned property remains positive. If you are considering selling, buying or simply want a clear view of where your property sits today, we are here to help.
