The Urban Development Institute
of Australia (UDIA) - Victoria, today said increased Chinese investment in infrastructure
and the property sector could help build consumer confidence in the Victorian
property market with increased infrastructure and home building.
Tony
De Domenico, Executive Director of the UDIA (VIC) said the Victorian Government
Trade Mission to China next week is a good initiative
to promote Victorian industries and investment opportunities which underpinned
employment and is strongly supported by the UDIA and its members.
Mr
De Domenico, who will represent the UDIA on the Trade Mission said, "Not only
is it a time to seek investment, we see the Victorian Government's Trade Mission
as a great opportunity to promote the world class development skills and expertise
of Australian companies in the Architectural, Engineering, Environmental, Project
Management and Marketing areas of the Victorian development industry and associated
manufacturing.
"The
booming population expansion on the fringe of Melbourne, which has resulted in
Melbourne gaining 650,000 extra residents boosting the population by 18%, has
caught up with inadequate funding and planning for infrastructure at all levels
of government in the past decade.
"Melbourne
is in catch up mode on infrastructure and drastic action needs to be taken to
generate funds for infrastructure at a time when there are financial constraints,
and the Chinese Trade Mission next week is timely.
Mr
De Domenico said, "The State Government should also consider
government backed infrastructure bonds for specific projects where the current
burst of Australian savings could be put to work in a low cost fund with reasonable
returns to boost employment in the construction and building industry.
"Any
gains in the export markets to China for Victorian agricultural products and tourism
would also be a boost to the regional and country housing markets through an improved
local economy and employment.
"Currently
employment in the Victorian development industry is being sustained by existing
projects, however, there is a need to create a pipeline of new projects because
of the major contribution of the industry to the Victorian economy through employment
and taxes.
"In
Victoria the 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.
"The
release of the projected Victoria in Future 2012 figures by the Victorian Government
showing an average growth rate of .3 per cent between 2011 and 2031, seeing Victoria's
population grow from 5.6 million to 7.3 million, will underpin demand in the property
industry long term and maintain a demand in outer suburban areas.
"Despite
difficult economic times we need to assemble funding for infrastructure to make
Victoria competitive to secure employment and meet the
demand for infrastructure on the fringe," Mr De Domenico said.
Media
Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC) - Mobile:
0417 329 201
