Tony De Domenico, Executive Director of UDIA Victoria said, "In Victoria alone the development industry directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross product and contributes $4.6 billion in taxes to all tiers of government."

Mr. De Domenico said the sheer size of the property industry means any significant shift in activity will have a strong impact in many other areas of the economy, especially where people are moving onto new estates as once the homes are built there is a demand for furniture, white goods and local services.

"With low interest rates home buyers are now entering the market at a time in Victoria when the housing market is continuing to be stimulated by the Victorian population growth forecast at 1.7 per cent being driven by a high birth rate and high net migration.*

"The market for new homes is also being stimulated by the Victorian Government's policy of directing first home buyer grants to people buying new homes, the lowering of stamp duty proposals and cutting red tape to reduce costs in delivering housing."

Mr. De Domenico said that one of the biggest factors in the resurgence of the Victorian and national property market was the Federal Election which ended an era of uncertainty for both the development industry and Australian home buyers.

"The development industry in Victoria and nationally is one of the major economic levers that the State and Federal Governments can encourage to lift and sustain employment. It is vital to maintain the reform of the industry and the cutting of red tape in the planning and building regulations to remove unnecessary duplication.

"The new changes on environmental approvals now to be implemented by the Abbott Government with the co-operation of all State Governments will clear away the uncertainty in seeking and complying with environmental requirements.through the much needed one stop shop approach.

"This is a major win for the community and the industry which should see an end to projects being held in limbo for up to several years stuck in the bureaucratic maze at a time when people need jobs and there is population and economic pressure to lift the supply of affordable housing."

Mr. De Domenico said the UDIA expected to see strong growth of housing activity in regional and country areas throughout Victoria with new consumer confidence especially around Geelong, Ballarat and Bendigo.

* Victorian Government Budget Forecast

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