Media Release


New Home Starts Major Key to Victoria's Economic Recovery



The commencement of new homes in Victoria in the next three years will be a major key to Victoria's economic recovery and employment, the Urban Development Institute of Australia (UDIA) said today.

Tony De Domenico
Executive Director 

Executive Director of the UDIA (VIC), Tony De Domenico said, "The recent re-alignment of the first home buyers grant by the Victorian Government to the construction of new homes and the reduction of stamp duty has recognised the role the development industry plays in the economy."

Mr. De Domenico's comments followed the UDIA Research Breakfast where the industry was told by Charter Keck Cramer Director Strategic Research, Robert Papaleo that with the new home buyers grant combined with low interest rates, the industry should lead to moderately higher sales activity through the second half of 2013.

"With about 80,000 people coming into Victoria every year combined with the need to create economic development, it is vital the traditional roadblocks to the development industry are minimised. These include confused and uncertain planning processes, long delays of up to years at local government level and conflict between Federal and State planning regulations."

Mr. De Domenico said the recent overhaul of the Victorian planning system had been a welcomed review and provided a foundation for better planning and the ability to attract investment into Victoria.

"With the greenfield market forecast to have a long recovery period it is vital to restore confidence in the market and the Victorian economy.

"The Victorian development industry which directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and $4.6 billion in taxes to all tiers of government, is looking to create urgently needed jobs and requires investment and projects in the pipeline."

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