How’s The Market? The Victorian Election Could Change Melbourne Property… Here’s What Each Party Is Promising

In This Week’s How’s The Market | Edition 174

• Victoria’s Election : What It Means for Property

• Victorian Grandeur Meets Modern Luxury

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  Victoria heads to the polls on 28 November, and the outcome could shape Melbourne’s property market for years to come.

  From stamp duty and land tax to housing supply, rental regulations and even how properties are sold, the major parties have very different plans.

  Here’s a snapshot of what Labor, the Liberal–National Coalition, the Greens and One Nation are proposing, and what these changes could mean for buyers, investors and renters.

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  Five Big Property Battles to Watch

  1. Stamp Duty: Could Buying a Home Become Cheaper?

  Currently, eligible Victorian first-home buyers pay no stamp duty on properties valued up to $600,000, with concessions available up to $750,000.

  • Labor: No changes proposed to the existing concessions.
  • Liberal – National Coalition: Proposes lifting the first-home buyer exemption to $1 million.
  • Greens: Proposes abolishing stamp duty for owner-occupiers buying below $1.1 million, with reduced rates up to $1.6 million.

  While these changes could reduce upfront buying costs, increased purchasing power could also put upward pressure on property prices if housing supply fails to keep pace with demand.

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  2. Land Tax: Relief for Investors or Higher Taxes on Big Portfolios?

  Following Victoria’s 2023 land tax changes, which lowered the general tax-free threshold from $300,000 to $50,000, parties are now proposing different approaches.

  • Labor: Gradually increases the threshold by $25,000 annually.
  • Coalition: Proposes restoring the threshold to $300,000 over five years.
  • One Nation: Wants to wind back Labor’s land tax increases.
  • Greens: Proposes significantly higher land tax for residential investment portfolios valued above $5 million.

  The key question is how these policies could affect investor costs, rental supply and the attractiveness of investing in Victorian property.

  3. Where Will Melbourne Grow?

  Labor plans to enable 300,000+ new homes by 2051 around 60 train and tram activity centres. The Greens also support more housing near transport, while the Coalition prioritises growth areas and CBD development, and One Nation focuses on releasing land and speeding up approvals. 

  These competing plans could reshape neighbourhoods, development opportunities and property values.

  4. Investors vs Renters: Two Different Housing Approaches

  The Greens propose a two-year rent freeze, rent increase limits and 88,000 additional public homes. Labor continues renter protections, while the Coalition prioritises lower costs, private investment and housing supply. One Nation focuses on reducing housing costs and making it easier to rent out granny flats and rooms.

  The key debate is whether stronger renter protections, private investment, more public housing or a mix of all three will best meet housing demand..

  5. First-Home Buyers: More Help Getting Into the Market?

  Proposed stamp duty changes could reduce upfront costs for eligible buyers. However, easier buying doesn’t always mean greater affordability, more competition for limited properties could push prices higher, making housing supply crucial.

  One More Policy That Could Change How Melbourne Buys and Sells Property

  The Greens propose banning street auctions, requiring fixed advertised prices and upfront reserve disclosure, and making sellers pay for building, pest and energy-efficiency reports. These changes could reshape how buyers compare properties, assess risks and compete for homes.

  What Happens Next for Melbourne Property?

  The Victorian election could bring substantial changes to property taxes, planning rules, rental regulations and buying costs.

  For buyers, investors and renters, understanding these proposals is essential but their actual impact will depend on which policies are implemented and how the market responds.

  The biggest question remains: can Melbourne build enough homes to meet demand?

  Because tax concessions, rental reforms and planning changes may all influence the market, but the long-term challenge is ensuring housing supply keeps pace with population growth.