Victorian landlords sell up with property listings skyrocketing: PropTrack
Victorian landlords are exiting the market in droves with September property listings at their highest in almost a decade. See the areas they’re leaving.
Victorian landlords are exiting the market in droves with September property listings at their highest in almost a decade.
PropTrack revealed the amount of homes for sale on realestate.com.au was up 10.2 per cent year-on-year — the strongest activity for that month since 2015.
Melbourne also had the third-largest jump in listings of any capital city aside from Canberra and Sydney, rising 16 per cent year-on-year.
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It comes as the state’s punitive property taxes continue to hamper rental providers, with many choosing to sell up this spring.
PropTrack economic research director Cameron Kusher said the increase in Victoria’s land tax had encouraged some highly-leveraged investors to sell their properties, partly explaining why stock on the market had soared.
“That’s definitely something that sets Melbourne and Victoria apart from the rest of the country; we haven’t seen those onerous investor taxes brought in elsewhere,” he said.
“Landlords are exiting the market; this is giving first-time buyers some opportunities to enter the market as well.”
He said Melbourne property prices had remained relatively flat compared to the rest of the nation in the past 12 months, meaning homeowners hadn’t seen much of a rise in their equity either. PropTrack data revealed the city’s median home price fell 1.79 per cent from $806,435 to $792,000 in the 12 months to September.
Ray White analysis of ABS data found the Victorian government raked in a whopping $12.6bn in property-related tax revenue in the 2023 financial year — the highest of any other state or territory.
Ray White chief economist Nerida Conisbee said Victoria had historically been a place where there was lots of investment, but burdensome taxes were inhibiting that.
“The more taxes you put on, the more of a handbrake it is for the economy, but also for development in Melbourne,” Ms Conisbee said.
“Whatever you do to taxation, there are always winners and losers; if you tax investors more, that means more paying for renters, but tends to be better news for first-time buyers.”
The Mornington Peninsula experienced the biggest year-on-year increase in property listings in Greater Melbourne, rising by a massive 27 per cent.
Peninsula Sotheby’s International Realty managing director Rob Curtain said he had certainly felt the increase, and believed homeowners down the beach were selling up if they weren’t using their holiday homes or could no longer afford them.
And in regional Victoria, the total amount of residences to the hit the market was the highest year-on-year of all regional areas across the nation, surging by 19.6 per cent.
Mr Kusher said there were many investment properties outside of Melbourne, and with people being drawn back to the office and struggling with increased taxes, they were also selling up and contributing to the large volume of stock on the market.
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sarah.petty@news.com.au
Originally published as Victorian landlords sell up with property listings skyrocketing: PropTrack
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