Beyond the Deal: Is Victoria’s Housing Crisis Strategy Working?

This week, I had the pleasure of sitting down with Richard Riordan, Shadow Minister for Housing in Victoria, for the latest episode of Beyond the Deal. We discussed how government policy is shaping the housing market, whether the current approach is working, and what alternatives might better address Victoria’s housing needs.

Victoria is in the midst of a housing crisis. The state government has set a target of building 800,000 new homes by 2034, yet only 60,000 homes have been completed in the first two years. This shortfall is creating significant challenges for both first-home buyers and renters. Richard shared his perspective on the government’s policies, and we explored possible solutions to help homeowners and future buyers across Victoria.

I’m also excited to share that next month I’ll be joined by Cameron Kushner, who has held roles as Head of Research at CoreLogic and Head Economist at realestate.com.au. He’ll bring a wealth of insights into where the market is headed.

What’s Happening in the Market?

Here at Besser+Co., we’re busier than ever. While most reports show stock levels remain low across Melbourne, we’ve been fortunate to list more stock than we’ve ever had.

Although not every property is seeing fierce competition under the hammer, the large majority of homes are still selling before auction, at auction, or within a couple of days after. Interest rates are having an impact on buyer sentiment, but in my view, it’s still the tight stock levels that are driving the market more than anything else.

Starting 1 October, the Federal Government will roll out its new policy allowing eligible buyers to purchase with just a 5% deposit, without paying lenders mortgage insurance. Backed by a government guarantee, this initiative could help more Australians step onto the property ladder. It’s a fresh approach, and it will be interesting to watch how it influences buyer activity.

The Victorian Government has also announced proposed zoning reforms across nearly 30 activity centres in Melbourne. If passed, these changes would allow developments of up to 16 storeys (about 50 metres high) around train and tram hubs, with the aim of delivering 300,000 new homes by 2051. The big question is whether these homes can be built at prices the public can actually afford.

With Spring now in full swing, we’re watching closely how these shifts in policy, combined with limited stock levels, continue to play out in the market.

If you’re thinking of making a move, whether buying, selling, or investing, now is the time to start planning.

Kind regards,

Dion Besser

0412556443

dion@besserco.com.au