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Victorian property market update
Victorian Property Market Update

The property market in Victoria, Australia, has been subject to quite a lot of ‘tinkering’ as the state government looks to find new ways to raise revenue.

Despite this, there are still opportunities to be had in property investment in Victoria, as you’ll learn in this discussion with Kate Hill and Terry Ryder (Hotspotting).

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I’m Kate Hill from Adviseable, and I am here with Terry Ryder from hotspotting dot com dot au.

We are discussing some of the opportunities that there are still to be had in the Victoria property markets despite some of the negative vibes that you are reading about in the press.

So, Terry, I am noticing, seeing, I’m hearing that a lot of the property markets, as much as I don’t believe in, you know, Victoria being one property market, but leave that aside for now, that the Victorian property markets are a bit subdued at the moment.

A lot of investors have sold out. They’re planning to sell. They’re putting off buying there. There’s been some legislation changes and some land tax introductions.

We’re very keen to hear what you’re seeing on the ground in Victoria, and also what you think about those new legislations and the land taxes that have been introduced in that market?

So we’ve got two really powerful forces working against one another there. On the one hand, we’ve got a very strong state economically. We’ve got a state that’s, and particularly the city of Melbourne, which has boosted a lot from overseas migration, because a lot of it goes into Melbourne.

We’ve got, you know, good lifestyle factors. You know, Melbourne’s a great city. According to some definition, it’s now our biggest city.

But working against that is the is the attitude of the state government. It’s, I believe it’s been the most anti investor state government, state or territory government in the country.

And recently, it’s I think it’s gone overboard. I mean, it really is slamming investors with, increased existing taxes and new ones.

And it’s like, I think that the state government of Victoria has got a revenue problem, and they’re trying to, milk as much as they can from property investors to prop up their budget, but it’s not helping, the property market there.

People want to invest in Victoria because of the strength of the economy and the state, but, some people have been scared by what the state government is doing and are getting out of Victoria.

And you do absolutely, I have the same experiences.

And you in your research for your reports, particularly let’s say your price predictor reports, which is fantastic, everyone should get one of those, And your other Victoria based, research reports, are you can you share with us any stats and figures on what you’re seeing in terms of sales and what how is thi impacting the rental market in Victoria?

Yeah. Well the big one that really struck me, recently PropTrack, one of the major sources of good data about residential property. They produced their latest, vacancy rate figures. And, in keeping with the national trends, most of the cities had you know, a small further reduction in their vacancy rates, but Melbourne had a massive reduction.

They’d sort of dropped from like one point five percent to one percent. I haven’t seen a short term drop that big, before. And, well, without having investigated it, it seems to me that it’s a reaction to by investors to, some of the measures that are being brought in by the state government, which are very detrimental to investors.

So, we already have a dire shortage of rental properties. It seems to me like it’s gonna get a whole lot worse. Yes. In Victoria and harder for tenants looking for a place to rent Rents upward pressure on rents still further. So all of that’s detrimental, but I suppose you could also take the viewpoint from, the viewpoint of, an investor on the outside looking in, there’s opportunity there because, you know, a dire shortage is going to get worse and therefore, there’s gonna be good rental returns to be had.

Yes.

Not great if you’re a tenant, however. And that is always what seems to amaze me that these alleged laws, legislations that are supposedly meant to help tenants are, the things that actually, they’re the ones that are affected the worst. Yeah.

I don’t think politicians really think through the consequences of some of their stated policies and decisions that they make, they perhaps don’t understand property market dynamics terribly well.

I mean, there’s there’s one force in politics which would, have a rental freeze, scrap negative gearing, increase capital gains tax, without having understood the impact that would have. Yes.

On the people they think they’re trying to help, which is people who need to rent, because what is now a rental shortage crisis would quickly become a rental shortage catastrophe Yes.

If those sorts of policies were implemented. Mhmm.

So are you seeing any opportunities? I’ll say, I do.

You know, there there are some really great basic growth drivers that we have in many of our Victoria markets.

But are you seeing opportunities in places like in Geelong, in Ballarat, Bendigo, out of Melbourne itself, you know, all those all those areas that we have looked at over the years.

What’s your thoughts on those areas at the moment?

Well, they’re still good areas to consider despite everything because, you know, Geelong, Ballarat and Bendigo, I regard as the big three of regional Victoria. Yeah.

They’re all great cities. They’re growing cities. They’re substantial in size. They’ve all got strong diverse economies, which is something we also look for in a regional location.

They’ve all, have good proximity to Melbourne and good transport links to Melbourne.

So, you know, that big trend that we’ve seen in recent years of people moving out of the big cities to regional areas for affordability and lifestyle, those regional Victorian cities are perfect for that. Yes.

Because people can move to those places, buy much more affordably, have that more relaxed lifestyle, but they’re still very close to Melbourne if they want or need to go there. So, there will always be, I think, demand for those places.

They’ve had good growth. You know, Geelong is an amazing market.

It just keeps on producing growth, but still very affordable compared to, the capital city. Mhmm.

And that’s also true of Ballarat and Bendigo. So there are, people who buy there now will, long term, provided they make good decisions, do well.

Yes. I agree. I agree one hundred percent.

And the demand for property is still there even though there is a diminished investor interest.

But like you said earlier, there’s a lot of migrants that move have moved into the area, the job opportunities there. So the demand is still strong and, you know, I have property in Victoria as well.

And, I’m seeing those rents increase significantly because of the shortage of great of good rental properties. And values are holding strong. I really I see good opportunity there too. Yeah. Yeah. Yeah.

It’s still worthy of consideration, if you can get over that mental hump of the static coming from the state government, which, could could scare some, and has scared some people.

That’s right. Okay. Well, thank you very much for your insights, Terry.

We really appreciate it.

I’m Kate Hill from Adviseable, and I am here with Terry Ryder from hotspotting dot com dot au.

We are discussing some of the opportunities that there are still to be had in the Victoria property markets despite some of the negative vibes that you are reading about in the press.

So, Terry, I am noticing, seeing, I’m hearing that a lot of the property markets, as much as I don’t believe in, you know, Victoria being one property market, but leave that aside for now, that the Victorian property markets are a bit subdued at the moment.

A lot of investors have sold out. They’re planning to sell. They’re putting off buying there. There’s been some legislation changes and some land tax introductions.

We’re very keen to hear what you’re seeing on the ground in Victoria, and also what you think about those new legislations and the land taxes that have been introduced in that market?

So we’ve got two really powerful forces working against one another there. On the one hand, we’ve got a very strong state economically. We’ve got a state that’s, and particularly the city of Melbourne, which has boosted a lot from overseas migration, because a lot of it goes into Melbourne.

We’ve got, you know, good lifestyle factors. You know, Melbourne’s a great city. According to some definition, it’s now our biggest city.

But working against that is the is the attitude of the state government. It’s, I believe it’s been the most anti investor state government, state or territory government in the country.

And recently, it’s I think it’s gone overboard. I mean, it really is slamming investors with, increased existing taxes and new ones.

And it’s like, I think that the state government of Victoria has got a revenue problem, and they’re trying to, milk as much as they can from property investors to prop up their budget, but it’s not helping, the property market there.

People want to invest in Victoria because of the strength of the economy and the state, but, some people have been scared by what the state government is doing and are getting out of Victoria.

And you do absolutely, I have the same experiences.

And you in your research for your reports, particularly let’s say your price predictor reports, which is fantastic, everyone should get one of those, And your other Victoria based, research reports, are you can you share with us any stats and figures on what you’re seeing in terms of sales and what how is thi impacting the rental market in Victoria?

Yeah. Well the big one that really struck me, recently PropTrack, one of the major sources of good data about residential property. They produced their latest, vacancy rate figures. And, in keeping with the national trends, most of the cities had you know, a small further reduction in their vacancy rates, but Melbourne had a massive reduction.

They’d sort of dropped from like one point five percent to one percent. I haven’t seen a short term drop that big, before. And, well, without having investigated it, it seems to me that it’s a reaction to by investors to, some of the measures that are being brought in by the state government, which are very detrimental to investors.

So, we already have a dire shortage of rental properties. It seems to me like it’s gonna get a whole lot worse. Yes. In Victoria and harder for tenants looking for a place to rent Rents upward pressure on rents still further. So all of that’s detrimental, but I suppose you could also take the viewpoint from, the viewpoint of, an investor on the outside looking in, there’s opportunity there because, you know, a dire shortage is going to get worse and therefore, there’s gonna be good rental returns to be had.

Yes.

Not great if you’re a tenant, however. And that is always what seems to amaze me that these alleged laws, legislations that are supposedly meant to help tenants are, the things that actually, they’re the ones that are affected the worst. Yeah.

I don’t think politicians really think through the consequences of some of their stated policies and decisions that they make, they perhaps don’t understand property market dynamics terribly well.

I mean, there’s there’s one force in politics which would, have a rental freeze, scrap negative gearing, increase capital gains tax, without having understood the impact that would have. Yes.

On the people they think they’re trying to help, which is people who need to rent, because what is now a rental shortage crisis would quickly become a rental shortage catastrophe Yes.

If those sorts of policies were implemented. Mhmm.

So are you seeing any opportunities? I’ll say, I do.

You know, there there are some really great basic growth drivers that we have in many of our Victoria markets.

But are you seeing opportunities in places like in Geelong, in Ballarat, Bendigo, out of Melbourne itself, you know, all those all those areas that we have looked at over the years.

What’s your thoughts on those areas at the moment?

Well, they’re still good areas to consider despite everything because, you know, Geelong, Ballarat and Bendigo, I regard as the big three of regional Victoria. Yeah.

They’re all great cities. They’re growing cities. They’re substantial in size. They’ve all got strong diverse economies, which is something we also look for in a regional location.

They’ve all, have good proximity to Melbourne and good transport links to Melbourne.

So, you know, that big trend that we’ve seen in recent years of people moving out of the big cities to regional areas for affordability and lifestyle, those regional Victorian cities are perfect for that. Yes.

Because people can move to those places, buy much more affordably, have that more relaxed lifestyle, but they’re still very close to Melbourne if they want or need to go there. So, there will always be, I think, demand for those places.

They’ve had good growth. You know, Geelong is an amazing market.

It just keeps on producing growth, but still very affordable compared to, the capital city. Mhmm.

And that’s also true of Ballarat and Bendigo. So there are, people who buy there now will, long term, provided they make good decisions, do well.

Yes. I agree. I agree one hundred percent.

And the demand for property is still there even though there is a diminished investor interest.

But like you said earlier, there’s a lot of migrants that move have moved into the area, the job opportunities there. So the demand is still strong and, you know, I have property in Victoria as well.

And, I’m seeing those rents increase significantly because of the shortage of great of good rental properties. And values are holding strong. I really I see good opportunity there too. Yeah. Yeah. Yeah.

It’s still worthy of consideration, if you can get over that mental hump of the static coming from the state government, which, could could scare some, and has scared some people.

That’s right. Okay. Well, thank you very much for your insights, Terry.

We really appreciate it.

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