• Berwick Gazette
• Pakenham Gazette

By Melissa Meehan

3rd March 2010 02:00:48 AM

---

NEW home buyers could be squeezed out of the market as land prices soar thanks to the government’s failed GAIC tax, according to Urban Development Institute of Australia president Tony De Domenico.

“It’s disappointing when two major political parties both agree, on principal, to charging a development fee but can’t agree on the detail of it,” Mr De Domenico said.

“Both politicians and the industry have agreed there is a need to charge a fee in order to provide infrastructure and yet they can’t come to a compromise.”

Mr De Domenico said unless the government provides more land, Melbourne will run out sooner rather than later.

“If that happens, Melbourne will be in the same position Sydney is in,” he said.

“The crisis will be so high, affordability will go out of the window and only the privileged will be able to afford houses.”

He said the demand for houses would continue to grow as Melbourne’s population does and if demand were higher than supply prices would soar.

“Victoria will lose the competitive advantage it has. The Victorian economy will lose as well,” he said.

“It is simple and basic economics – unless Victoria sticks a fence up and allows no more migrants in, it will be a major problem.”

He said the UDIA would continue to lobby the government to ensure their promise to provide land to developers for the next 15 years would be kept.

---

Popular Stories