# Victoria housing supply and affordability initiatives > Live situation record from CLSTR: https://clstr.news/situations/victoria-housing-supply-and-affordability-initiatives > Updated: 2026-10-20T18:50:00.000Z. Sources: 4. Developments: 2. The Victorian Labor government has introduced several measures to address housing supply and affordability ahead of the November state election. To stimulate supply, the government announced plans to reduce costs for foreign developers by cutting the absentee owner surcharge for residential projects that meet specific priorities, such as energy-efficient medium-density housing or strategic land unlocks. Under this policy, qualifying overseas developers would be exempt from the surcharge during construction and receive a two-year tax exemption following project completion. Additionally, the government pledged $1 billion to build approximately 25,000 new homes and apartments specifically for first-time buyers. This initiative, funded jointly by the state and federal governments, aims to develop residences on government-owned sites across Melbourne and regional Victoria between 2027 and 2034. While homes will be sold at market rates, bidding eligibility will be restricted to first-home buyers. ## Timeline ### 2026-10-20: Victoria Labor pledges 25,000 homes for first-home buyers Victorian Labor has pledged to build 25,000 homes for first-time buyers on government land through a $1 billion joint state and federal initiative. 3 sources. https://clstr.news/cluster/victoria-labor-pledges-25000-homes-for-first-home-buyers ### 2026-10-14: Victoria to cut property taxes for foreign developers to boost housing Victoria's Labor government will cut property tax surcharges for foreign developers to boost housing supply and address a 55,000-home deficit in its decade-long building target. 2 sources. https://clstr.news/cluster/victoria-to-cut-property-taxes-for-foreign-developers-to-boost-housing --- Cite as: Victoria housing supply and affordability initiatives. CLSTR, https://clstr.news/situations/victoria-housing-supply-and-affordability-initiatives