Sally Capp – the former executive director of the Property Council of Australia’s (PCA) Victorian branch and Melbourne Lord Mayor – has questioned the Victorian Government’s announced increase in the surcharge imposed on foreign buyers of residential property from 7% to 8%. Capp warns that the increase has come at a “critical time” for Melbourne, with the supply of new housing starting to fall, and claims that foreign investors tend to be long-term asset holders and often invest at the construction phase of new projects. From The AFR:
“We are very mindful of the value they bring to the city, and we will look carefully at how the market responds at a critical time.
