Tania Maxwell, member for Northern Victoria from Derryn Hinch's Justice Party, said she had misgivings about the proposed scheme.

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"There are critical housing shortages across the state and this is a time that we need to be supporting development in regional areas,'' she told the Bendigo Advertiser.

"We have real concerns that the proposed windfall gains tax will adversely impact development supply and housing prices. We are reviewing amendments and will use our vote to minimise the financial impact for regional Victoria."

The City of Greater Bendigo is in talks with the state's planning department to get a better understanding of existing greenfield land supply in the the region. It is working on an update of the Urban Development Program report.

"When the last UDP was prepared it estimated that between 2011 and 2016, 780 new lots were constructed annually,'' it stated in the publicly available tender document. The figures have trended upwards in recent years.

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Developer Julian Perez said he was concerned about the impact of the tax in Bendigo, where people chose homes based on affordability as much as lifestyle.

"It's being promoted as a tax that will only hit developers and wealthy landowners," he said.

"I think it is probably going to have a bit of an impact on buyers trying to break into the market in regional areas."

That was because developers would likely have to pass costs on to clients.

Mr Perez - who is the general manager of Villawood Properties in Bendigo - said the costs would likely come on top of other taxes and levies.

That included City of Greater Bendigo "community development plans" which might be set aside for infrastructure in the city's high growth suburbs.

Mr Perez would like to see regional areas come up to par with arrangements in Melbourne.

He said windfall gains taxes are exempted in areas where metropolitan developers pay for some infrastructure. They are often used in areas of high growth.

House prices are rising in Bendigo and Mr Perez said part of the reason is uncertainty over the windfall gains tax's potential introduction.

"Developers don't like uncertainty so they are paying a premium for land that is already zoned, and that is driving prices up," he said.

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