Lappy,
Andrews has been in power since 2014, nearly 10 years. In that time he has overseen a massive shortage in housing and virtually no increase in public housing to such an extent that there is approximately 70,000 people on the Victorian waiting list currently.
The housing vacancy rate is just above 1%. There is a chronic shortage of housing in Victoria that has occurred under Andrews' watch. In the next three years there will be a shortage of 70,000 new apartments.
Landlords are under siege from Andrews in the form of massive swing towards tenants rjghts, clogged VCAT disputes listings, increased taxes, increased mandatory expensive appliance checks and the mooted rent controls over frequency and quantum. No wonder about 30% of auctions in Melbourne are landlords getting out meaning fewer rental properties are available to rent. You can also chuck in the failure of Vic Residential Housing Insurance Authority to manage Porter Davis lack of compliance with insurance premium collection.
And its not me saying this see article below published today in The Herald Sun
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108,000 apartments need to be built to house Victorians in the next three years
Sarah Petty
First published 27 Jul 2023, 9:00am
CBRE research predicts 108,000 apartments are needed to heed demand over the next three years in Melbourne.
More than 100,000 apartments need to be built in the next three years to meet housing demand in Melbourne, a leading property firm warns.
CBRE estimates that Greater Melbourne would need around 108,000 apartments to be built in the next three years based on population growth. However, supply is predicted to rise by just 38,000 apartments in that time period.
It comes as the state government is preparing to build new high-rise precincts in Melbourne’s transport hubs of inner and middle suburbs, stripping councils of decision-making powers to fast-track housing developments.
CBRE managing director of residential projects in Victoria, Andrew Leoncelli said no one was building anything, rents were booming and investors had been nervous to buy off the plan.
“There’s been a big, big, big mismatch between all of the key fundamentals really been in our market,” Mr Leoncelli.
“You have to be able to get quicker permits. You just have to. Council planning processes at the moment is just a nightmare.”
Mr Leoncelli said taxes on developers acted as a natural handbrake on supply, as they didn’t want to take on the debt. Picture: David Geraghty
Mr Leoncelli said developers were being taxed at every single part of the process to the point where there was “virtually no money to be made”.
“It’s cladding, it’s planning, time is delayed because there’s 400 million different things the bank’s charge you with, and won’t lend you any money until you get 80 per cent of the whole project pre-sold,” he said.
“That’s a natural handbrake on supply too. Developers won’t, they won’t take the project, they won’t take the debt on.”
