REIV and SCA call for action as Victorian election looms

With Victoria headed to the polls, the Real Estate Institute of Victoria (REIV) and the Strata Community Association (SCA) have both outlined their priorities, with the REIV stating that its recommendations would “ensure a prosperous future for all participants in Australia’s property sector”.

According to the REIV, its four key priority areas in need of addressing are:

• Address systemic industry governance issues, including a review of the Statement of Information and Material Facts guidelines, as well as the introduction of mandatory continuing professional development for all real estate professionals.
• Initiate a review into property taxation, which would include replacing stamp duty with a land tax regime for the benefit of state government revenue and property affordability.
• Review the Residential Tenancies Act (RTA) to simplify complex regulatory requirements and high costs for managing rental properties as well addressing the exodus of investors and critical supply issues in the industry.
• Strengthen the pipeline of new real estate talent that improves the transition from tertiary education into active real estate practice.

REIV chief executive officer Quentin Killian said the institute is seeking engagement from all sides of politics to ensure the property sector — which accounted for $65 million of the state’s gross regional product in the last financial year — remains well supported.

“One-fifth of our total economic output relates to property, and it forms almost half of state taxation revenue,” he said. “Sadly, recent years have seen an imbalance in the way residential property is regulated, taxed, and transacted, which has led to poorer affordability, state-wide supply issues, and a shortfall in emerging real estate talent.”

Speaking on behalf of all REIV members and sector stakeholders, Mr Kilian “welcomes a discussion with all sides of Victorian politics to ensure these sector issues are well understood and proposed solutions prioritised, to drive reforms that create a stronger and healthier sector in years to come”.

Adding to the institute’s recommendations, the SCA has listed its proposals for the government, which included supporting apartment and townhouse residents — who compromise one-quarter of Victorians — rolling out sustainability in strata and combatting building defects are the association’s primary focus.

“We represent 25 per cent of the population, yet this huge number of Victorians face significant hurdles finding the general information and advice about strata living and their owners corporation that they need, prior to seeking legal advice out of pocket, or even escalating a matter to dispute resolution,” said SCA Victoria president Gregor Evans.

Mr Evans explained that sources of information and government funding are scarce when it comes to matters that impact individuals’ lives, such as if they can install an electric vehicle charger, how to access safety and security plans, and what to do in the event their apartment leaks.

In order to provide clarity on these matters, plus numerous more, the SCA is proposing that the government introduce a flagship Strata Helpline “to provide certainty to consumers in the form of a dedicated avenue for general advice and information about strata matters and how owners corporations operate”.

The helpline would operate as a division of Consumer Affairs Victoria (CAV) under the proposal, staffed by two dedicated staff training and guided by an employee appointed by the SCA.

Calculations from the association dictate that the annual cost of the helpline would amount to $381,000 per annum, or $1.524 million throughout the next government term.

Also on SCA’s agenda is the establishment of smarter, greener, and more livable strata communities. Under this recommendation, the Victorian government would ideally introduce a range of priorities, which include:

• Subsidising NABERS water and energy efficiency ratings for up to 100 Victorian apartment buildings
• Extending the successful Solar Homes Program to apartments
• Supporting the installation of EV charging in medium and large apartment buildings on a scale that resembles NSW

Mr Evans acknowledged that net zero carbon emissions are a key target for both the Labor and Liberal parties; he believes it will be difficult to obtain this objective “without strata and the built environment effectively being incorporated into future strategy”.

Furthermore, the SCA is also asking the government to combat the high rate of defects in strata while also imploring the implementation of a base building information portal for the storage of building manuals, which can be made accessible to owners corporations and managers in the event defects are discovered in their building.

“We also want to see greater action taken to address any underlying issues affecting the Domestic Building Insurance (DBI) scheme, as well as phoenixing in the building and developing sector,” he added.

Mr Evans concluded that “all our recommendations are non-partisan and can be easily achieved within the next term of government, and we strongly encourage the major parties vying for Victorians’ votes to ultimately commit to them, so that we can create a more livable urban landscape in Victoria in the years to come”.