Victorian economy looking to expand but needs continued confidence

Victoria has been working towards developing economic opportunities that will continue to spur growth well into the future.

A recent trade mission to India represents an attempt to tap into a new market for Australian tourism, advance research for the technology sector and increase trade between the two countries.

Beyond that, there have been at least three technology companies that have announced expansion into the Melbourne region in recent months, including Digital Realty, SilverStripe and Interactive.

Bringing jobs and funds to Victoria, the investments are a positive development in the state’s quest to cultivate a strong technology industry in the area.

While the region faces some economic challenges related to the global economic slowdown, there is potential to foster growth and property investment throughout the state.

According to the Urban Development Institute of Australia (UDIA), confidence is the key. Continued confidence is an important factor that will help expand the Victorian economy.

“People need to be careful they don’t talk the State into recession, as destabilising public confidence can have an impact on people making decisions to spend, exacerbating the downturn,” said executive director of the UDIA for Victoria Tony De Domenico.

He suggested inspiring “a sense of urgency” in the government to process permit applications for land development as well as commercial and housing renovations.

“The reality is behind (e)very permit stands a job and money being spent on materials.”

Mr Domenico said that population growth will continue to drive the property sector and that citizens need to look at the future of the economy rather than the past.

“We need more focus on gain not blame.”

According to the UDIA, the property industry holds value in employment opportunities, tax revenue and gross domestic product contribution and building confidence is an “important factor” in for recovery of the Victorian economy.

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.