The Baillieu government's budget represents a responsible series of decisions in a difficult financial climate, according to the Property Council of Australia (PCA).
However, it is important the government bears in mind that the Australian property industry is one of the most crucial sectors in Victoria and contributes a great deal to the state's economy, the body warned.
With this in mind, it praised the commitment shown to short and medium-term infrastructure but encouraged a further move to be made to support long-term projects.
PCA Victoria executive director Jennifer Cunich said: "Victoria is in the midst of an era that will define its future success. The choices we make now and in coming years, will determine the future of ... its cities and towns."
The coalition government's budget is expected to deliver record infrastructure investment of roughly $5.8 billion (£3.72 billion) over the course of 2012 and 2013, in a bid to generate jobs and encourage investment in the state.
This comes despite a series of economic shocks lowering the state's expected revenues.
Posted by Steve Douglas