The Property Council Victoria recently released the latest edition of its Procore sentiment survey.

The good news (relatively speaking) is that confidence in Victoria is up by three points.  This is tempered somewhat by the fact that Victoria still trails the rest of the country, with the industry’s faith in the state government’s ability to plan and manage growth having plunged to an all-time low.

With 63 per cent of Victorian respondents identifying property taxes and charges as their top concern, the Property Council of Victoria has stressed that the government must deliver genuine tax relief if it wants to win back the support of the property sector.

This unsurprising outcome clearly reflects the mounting and cumulative fiscal burden imposed by the state government, undermining the viability of critical projects in an industry that contributes 12 per cent of Victoria’s GSP.

“At CRS Property, we agree that Victoria’s ever-increasing taxes are stifling growth both in the short and medium term.  Investor sentiment is at a low point, with the sector needing meaningful relief to restore confidence to the transactional market as well as ensuring future development pipelines,” said Lincoln McConnell-Brown, Senior Principal and Head of Asset Management at CRS Property.

Taxes were also at the forefront of mind in the Property Council’s most recent submission to the City of Melbourne on its M2050 Vision and 2025–29 Council Plan.  They argued that relief measures – such as establishing a CBD Special Economic Zone, halting further congestion levy increases, and avoiding mandatory inclusionary zoning – are essential in supporting the feasibility of both new and adaptive reuse projects in the city.

Mr McConnell-Brown further states, “While the tax environment in Victoria is undoubtedly challenging and weighing on investor sentiment, we are still seeing that quality properties with strong lease covenants continue to attract buyers.  Investors remain willing to pay for safe-haven assets with security and reliability, even in a challenging market.”

About CRS Property
CRS Property is a trusted commercial real estate agency specialising in sales, leasing, and property management across Victoria. With deep market knowledge and a client-first approach, CRS Property consistently delivers outstanding results for property owners and tenants alike.  

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