UDIA (VIC)

The Urban Development Institute of Australia (UDIA) - Victoria, today said increased Chinese investment in infrastructure and the property sector could help build consumer confidence in the Victorian property market with increased infrastructure and home building.

Tony De Domenico, Executive Director of the UDIA (VIC) said the Victorian Government Trade Mission to China next week is a good initiative to promote Victorian industries and investment opportunities which underpinned employment and is strongly supported by the UDIA and its members.

Mr De Domenico, who will represent the UDIA on the Trade Mission said, "Not only is it a time to seek investment, we see the Victorian Government's Trade Mission as a great opportunity to promote the world class development skills and expertise of Australian companies in the Architectural, Engineering, Environmental, Project Management and Marketing areas of the Victorian development industry and associated manufacturing.

"The booming population expansion on the fringe of Melbourne, which has resulted in Melbourne gaining 650,000 extra residents boosting the population by 18%, has caught up with inadequate funding and planning for infrastructure at all levels of government in the past decade.

"Melbourne is in catch up mode on infrastructure and drastic action needs to be taken to generate funds for infrastructure at a time when there are financial constraints, and the Chinese Trade Mission next week is timely.

Mr De Domenico said, "The State Government should also consider government backed infrastructure bonds for specific projects where the current burst of Australian savings could be put to work in a low cost fund with reasonable returns to boost employment in the construction and building industry.

"Any gains in the export markets to China for Victorian agricultural products and tourism would also be a boost to the regional and country housing markets through an improved local economy and employment.

"Currently employment in the Victorian development industry is being sustained by existing projects, however, there is a need to create a pipeline of new projects because of the major contribution of the industry to the Victorian economy through employment and taxes.

"In Victoria the industry directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and contributes $4.6 billion in taxes to all tiers of government.

"The release of the projected Victoria in Future 2012 figures by the Victorian Government showing an average growth rate of .3 per cent between 2011 and 2031, seeing Victoria's population grow from 5.6 million to 7.3 million, will underpin demand in the property industry long term and maintain a demand in outer suburban areas.

"Despite difficult economic times we need to assemble funding for infrastructure to make Victoria competitive to secure employment and meet the demand for infrastructure on the fringe," Mr De Domenico said.

Media Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC) - Mobile: 0417 329 201