The Victorian Government has recently announced significant investment in residential construction across Metropolitan Melbourne. The Coronavirus pandemic has underpinned the importance of safe and secure housing and the Government has announced big investments – to keep people working in the construction industry and to ensure that more Victorians have a secure roof over their heads.
In November’s Victorian State Budget, the Government announced a $5.3 billion dollar program they’ve dubbed “Big Housing Build.” The aim of this massive project is to construct 12000 new residential properties across Melbourne and regional areas.
This investment in safe and secure housing will have the added benefit of creating 10000 homes per year over the next 4 years. The State Government projects that this will speed up Victoria’s recovery – both through the pandemic and into the future.
The Big Housing Build Package significantly grows Victoria’s social housing supply. An extra 9300 residences increases VIctoria’s social housing supply by 10% over the next four years. This gives Victorians a stable foundation to build, or rebuild their lives.
This social housing package helps many of our states most vulnerable including Aboriginal Victorians, pensioners, Victorians with disability, family violence victims and single parent families. There will also be significant support for those Victorians with mental illness, with 2000 of these properties being reserved for those Victorians living with mental illness.
The Victorian Government is attempting to create affordable properties throughout Victoria. 75% of the investment will be in metropolitan Melbourne. 25% of the funds have been allocated to regional Victoria.
To ensure that these properties don’t have a massive impact on climate change, all properties will be built to a 7-star energy rating. This means that they will have minimal carbon footprint. An added benefit is reduced power bills for residents.
This unprecedented investment in social housing is just one measure that the Government has invested in – to support the real estate industry and the construction industry whilst also ensuring that housing remains more affordable. Some of the other Victorian Government initiatives announced and funded include the Victorian Homebuyer Fund to get Victorians into home ownership sooner. They’ve also offered land tax discounts and are investing in the build to rent sector and they’ve extended the First Home Owner Grant.
As well as investing in social housing and offering incentives to home buyers and investors the Victorian Government is making some changes that encourage construction and development. The Government has announced a number of planning changes to streamline supply and encourage growth. They will be implementing the Commissioner for Better Regulations planning reforms and implementing other targeted planning system reforms to encourage private sector investment.
The November Victorian Budget recognises the importance of safe and secure housing, but it also recognises the importance that the real estate and residential construction market has in the Victorian economy. As such, the Government has made significant investments to support housing for more Victorians, to support employment and to ensure the viability and value of the real estate industry now and into the future.