Australia's Population Growth Creates Major Challenges

  

 

Tony De Domenico, Executive Director, UDIA (VIC)

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The Urban Development Institute of Australia Victorian Executive Director, Tony De Domenico discusses the major issues of housing affordability and lack of infrastructure funding in the face of Australia's rapid population growth, which is the theme of the UDIA National Conference in March 2013.

2 November 2012   

Tony De Domenico, Executive Director of the UDIA (VIC) said, "The commitment to the establishment of the third domestic airport in this location would be a major boost to business confidence and investors to establish more employment opportunities for the rapidly developing fringe suburbs in the south east of Melbourne".

"We believe this will have wide support across the community who would support action to get the first stage of the project on the current agenda."

Mr De Domenico said, "The time was also right for the Victorian Government to consider the introduction of Government Infrastructure Bonds as part of funding such projects as the third airport of Melbourne and other urgently needed transport infrastructure to curb congestion in Melbourne which is estimated to cost billions of dollars annually."

"The collapse of some non bank investment vehicles with thousands of investors facing the loss of hundreds of millions of dollars could be the catalyst for many people re-assessing their investment strategies".

"With Guaranteed Government Infrastructure Bonds being extremely safe and attractive the community could be attracted to investing in Victoria."

Mr De Domenico said that it is clear with Victoria's population expected to grow from 5.6 million to 7.3 million over the next 20 years the pressure for new affordable housing will continue to increase and areas such as the south east of Melbourne will continue to expand. In the next 30 to 40 years it is forecast Melbourne will need an extra million homes.

"The building of new homes on the fringe, the most affordable market for first home buyers, makes the greatest contribution to the economy stimulating employment with a domino impact on the associated supply and services industries."

"In Victoria the development industry directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and contributes $4.6 billion in taxes to all tiers of government."