How Victoria’s New Housing Policies Could Impact Investors

If you’re considering investing in land within a new masterplanned community like Kala, staying on top of housing policy changes is essential.

How Victoria’s New Housing Policies Could Impact Investors

These policies can influence land values, rental yields, and ultimately, long-term growth potential. Here’s an overview of some recent developments and their potential implications:

  • Short-Stay Accommodation Levy: Effective from 1 January 2025, a 7.5% levy will be imposed on short-stay accommodation bookings, such as those through platforms like Airbnb. While this may impact investors targeting short-term rentals, it also encourages opportunities in long-term leasing, which aligns with the steady demand for rental homes in growth areas like Pakenham East.
  • Planning Reforms: The government’s review of land subdivision regulations is expected to streamline processes for creating additional housing. This reform can make it easier to purchase and develop land in new estates, offering greater flexibility for investors looking to build or subdivide.
  • Big Housing Build: With significant government investment in urban renewal and housing projects, areas near greenfield developments may see improved infrastructure and community amenities, enhancing the overall appeal and value of nearby estates like Kala. You can see the investment that has already been put into Cardinia here as part of the Big Build.

Implications for Greenfield Investors:

  • Focus on Long-Term Opportunities: Greenfield or masterplanned estates often cater to families and first-home buyers, ensuring consistent demand for land and housing. The move away from short-stay rentals towards stable, long-term leases aligns with the needs of these communities.
  • Capital Growth Potential: As infrastructure projects and policy reforms enhance new housing areas, investors may benefit from increased property values and rental demand.
  • Community Appeal: Government initiatives to improve amenities and transport in growth areas make communities like Kala attractive options for both buyers and renters, supporting steady returns for investors.

It’s important to approach investment decisions with careful consideration and seek professional advice to ensure they align with your goals and circumstances.

If you’re interested in exploring land opportunities at Kala, we encourage you to register your interest today. Our friendly sales team is available to answer any questions or address concerns, helping you navigate your journey to land ownership with confidence. Let’s work together to make your dream a reality!