The property industry says it is not financially viable to build new apartments under the Victorian government’s Suburban Rail Loop plan because its funding model discourages property development, despite Premier Jacinta Allan insisting it is a housing project.
Victoria has committed $12 billion of its own funds for the first stage of the SRL, known as SRL East, and is relying on the federal government to finance a third. The Allan government claims the remainder will be raised via value capture, using funds raised by increased stamp duty on commercial properties and levies on developers and residential car parking.
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