Victoria’s “Big Housing Build” sends a very positive message

Government responses to the economic fallout from the Covid-19 pandemic have taken many forms – direct interventions with job support programs like JobKeeper, industry-specific packages for severely affected sectors like tourism and tax relief for low and middle income earners. Each of these measures are fast, relatively short-term responses to avoid an economic recession.

However, there was another just as important government initiative announced in November 2020 that will have much longer-lasting effects and benefits for Victoria. This is the Victorian government’s $5.3 billion “Big Housing Build” program.

This massive government investment will see the construction of more than 12,000 new homes across Victoria over the next four years. Although specifically designated as new housing stock for the socially needy (social housing) and low-middle income people (affordable housing), the benefits to the state’s economy and society in general will be more far-reaching.

These benefits will come in two main ways. Firstly, 12,000 new homes and $5bn means a massive boost to the building construction industry in the state. Thousands of new jobs will be created, both directly on house construction, but also in the industries that supply construction like materials, civil works, town planning, architecture, and services of all kinds.

Over the next four years, this will support hundreds of businesses, large and small, and generate revenue (with taxation flows back to the government) that will boost the economy in a huge variety of ways, not the least being the certainty and confidence that large long-term contracts provide.

Secondly, this newly built housing stock, especially the entry-level affordable homes, are being designed in close consultation with local councils, community groups and industry partners, to ensure that there is a harmonious integration of these new homes into the community environments where they will be located.

This designed integration will have the very positive effect of fast-forwarding new estate developments into mature suburban communities, which in turn will enhance the economic value and social cohesion of these expanding communities.

This second benefit is what Resimax Group has already demonstrated to be true in its current and ongoing estate developments around Melbourne, including the fast-evolving Eynesbury Township estate. Eynesbury is a perfect example of how designing new affordable homes, integrated into an existing community, brings these communities together with highly desirable lifestyles, underpinned with excellent social and community amenity.

Such social cohesion then becomes the starting point for rapidly increasing house price values as people are drawn to and seek out affordable homes that offer pleasant lifestyles, nearby secure employment, and long term security and growth in the value of the family home.

As always, there is so much more behind the headlines and this exciting government initiative is no exception.

If you would like to find out how an affordable home can secure your entry into the housing market as either a home-buyer or an investor, contact Resimax Group at investors@resimaxgroup.com.au