Finding a rental property in regional Victoria is becoming increasing difficult, according tonew data.
In December, only oneadditional property in the Geelong suburbs of Moorabool, Batesford, Lovely Banks, Anakie was listed for rent, according to a report in the Geelong Advertiser. In the same month, only two additional properties were listed for rent in Mount Wallace, Beremboke, Ballan.
The property industry is concerned about the rising number of investors fleeing Victoria, diagnosing this as the key cause of Victoria’s rental supply issues.
Managing Director of MCG Quantity Surveyors, Mike Morlock said: “While there is a national crisis of rental accommodation, investors are specifically avoiding investment in Victoria due to the introduction of the new land tax.”
Treasurer Tim Pallas announced controversial changes to land tax which came into effect on 1 January 2024 and are expected to raise an additional $5 billion in revenue.
Property owners will now pay a new levy up to $975. The land tax-free threshold has also been reduced from $300,000 to $50,000 which will impact 380,000 owners who will pay land tax for the first time.
Shadow Treasurer, Brad Rowswell, said: “Victorian renters are suffering the consequences of Labor’s brutal land tax, now having fewer rental options available and paying higher rents at a time when they can least afford it.
“This is yet another example of Victorians paying the price for Labor’s waste and mismanagement of the budget.”
Shadow Minister for Home Ownership and Housing Affordability, Evan Mulholland, said: “Labor talks a big game on housing, but under its almost decade in government rents have just gone up as Victorians are finding it harder than ever to find a rental. Labor boasts the highest property taxes in the country, all to pay for their waste and mismanagement, which gets passed on to renters and drives investors away.
“All the while, Labor’s ‘Big Build’ pushes up the cost of materials and labour, making it harder to build new homes.”
