Victorian Premier Jacinta Allan is facing a major credibility crisis over her ambitious housing plan, with fresh data revealing a dramatic construction slowdown and record-low industry confidence.
The latest Property Council and Procore survey shows Victoria has plunged to the lowest confidence score in the nation at -66.8 points – the worst ever recorded. By contrast, states like Queensland and Western Australia are experiencing stronger growth.
Allan has repeatedly said housing is one of her top three election priorities. Yet for the second year running, Victoria has failed to hit the annual target of 80,000 new homes, delivering just 60,000 in 2024 – a 20,000-home shortfall in a single year, according to the ABS.
Property Council Victoria executive director Cath Evans said the government’s 10-year goal of 800,000 homes by 2034 is already “off track.” Industry leaders blame soaring taxes and levies – including land tax, foreign investor duties, and the windfall gains tax – for stifling development.
Deputy director Andrew Lowcock argued that without genuine tax relief, new projects “go from yes to no.” Real estate financier Andrew Perkins added that hitting 80,000 dwellings annually would require “every housing type working together,” warning that the state’s affordability is “at stake.”
The Allan government insists Victoria continues to build and approve more homes than any other state. But with public debt projected to hit $194 billion by 2029, critics fear the Premier’s housing vision may be impossible to sustain.
