The Real Estate Institute of Victoria (REIV) will lobby for a property services commissioner to be appointed to oversee the industry, as part of their 2018 State Election Policy Priorities, released today.
The REIV has today announced it will use the upcoming state election in a bid to push for the creation of a real estate watchdog to oversee the industry, instead of Consumer Affairs Victoria (CAV).
REIV CEO Gil King says that with an annual $76 billion in real estate transactions, regulation via CAV could damage the state's economy.
"The enormous contribution that the property sector makes to the financial health of this state is at risk when the regulator’s primary focus is the protection of consumers rather than the effective regulation of and legislative requirements for the sector," Mr King said.
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"It is imperative that any regulator for the property sector be able to balance the best interests of the industry/profession with consumer protection. CAV by its very nature is not able to do this as its first priority is consumer protection. By its very title it is unbalanced against the profession in favour of the consumer.
"The REIV advocates for the creation of a Property Services Commissioner oversighting all aspects of the property market including land development, building and construction and the sale and rental of real estate," Mr King continued.
It follows a tense period of time between the real estate industry and the Labor government.
The REIV recently spoke out against the government's new reforms to the Residential Tenancies Act, arguing they will "result in an unfair, unworkable and impractical system".
The Real Estate Institute of New South Wales has also called for a dedicated property minister.
Mr King told WILLIAMS MEDIA better industry regulation is needed.
Related reading: New Victorian rental laws "will result in an unfair, unworkable and impractical system" says CEO of REIV
“Property has underpinned Victoria’s economic productivity over the past decade: we need a sound legislative, policy, infrastructure and funding structure if we want that to continue,” Mr King said.
The Real Estate Institute of Victoria's Policy Priorities also called for:
• Smart industry: promoting education and employment opportunities
• Retaining and enhancing liveability
• Growing regional Victoria
• The growth of Melbourne’s CBD
• Depoliticising the planning system
• Keeping Victoria competitive – property taxes
• Reducing business costs – payroll tax
• Removing legislative impediments to provide a secure investment environment
• Protecting the livelihood and reputation of our members
• Review the regulatory approach to real estate
“The REIV will be vocal in presenting our election priorities to all sides of politics. We want to see the tax burden eased, improved investment in training, slashing of red tape, an urgent review of CBD planning controls and better outcomes for Regional Victoria," Mr King said.
Improving education standards
Mr King told WILLIAMS MEDIA it's essential the government ensures training and education for real estate agents continues.
“It is critical that training and ongoing professional development keeps up with the increasingly complex, highly regulated and changing environment in which the real estate industry operates,” Mr King said.
“Real estate agencies are often significant employers in regional towns and centres where employment levels may be low and this has major flow-on effects for these communities.
“The next Government must collaborate with the REIV to bolster traineeships and other employment opportunities for young people in the real estate industry. This may include further incentivising real estate businesses in the country by reintroducing payroll tax exemptions.”
"The main political parties should commit to building capacity by investing in the education and skills of the real estate industry. This includes strategies such as promotion and market of the value of traineeships, particularly for new entrants in regional areas, increasing the number of real estate agents that go on to further qualifications and develop a mandatory continuous professional development course that is run by the REIV."
Managing CBD growth, growing Regional Victoria, and enhancing liveability
The REIV’s policy platform also calls for a Parliamentary Inquiry to identify how Melbourne’s growing reputation as a global elite city can benefit Regional Victoria.
“The REIV will highlight the need for an urgent review into CBD planning controls, the depoliticisation of planning decisions and prioritising development along transport corridors,” Mr King said.
While Mr King acknowledges transport projects such as the recently announced suburban rail loop, Melbourne metro rail and the Melbourne airport link will open opportunity for densification and curb population growth, he argues the current planning system does not facilitate delivery of the required housing close to existing transport and community infrastructure.
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"Political parties must review the relevant planning schemes to prioritise development along transport corridors," Mr King said.
"To leverage these investments to benefit regional areas, the REIV believes the next Victorian Government should investigate the value of a Parliamentary Inquiry, as there was in NSW, to identify how Melbourne’s growing reputation as a global elite city can benefit Regional Victoria."
The REIV advocacy paper also called for a similar model as NSW planning, where "planning decisions are made by independent planning panels that remove arbitrary decision making and ensure that planning approvals are subject to a transparent and technical approval process."
Lower property and business taxes, a repeal of legislation preventing agents from selling to associates (especially in small country towns), and removing legislative impediments is also on their agenda.
Visit the REIV website to read the full 2018 State Election Priorities Paper.
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