The availability of rental accommodation in Victoria is at its lowest level in 25 years, according to research by the Real Estate Institute of Victoria (REIV).
There was a further tightening of the rental market during September, with the number of vacancies in Melbourne falling from 1.6% in July to 1.2% in September. The fall brought a decline from 1.5% to 0.9% in the inner city, and 1.7% to 0.9% in outer Melbourne.
The situation in Victoria’s major regional centres reflects this, with Geelong and Bendigo
recording a vacancy rate of 1.6%, while Ballarat has a marginally healthier 2%.
“The continual low vacancy rate will result in more upward pressure on rents, further reducing affordability and access to accommodation,” said Enzo Raimondo, CEO – REIV.
“There is now an urgent need for local, state and federal governments to address this issue by removing disincentives for private sector investment in rental accommodation.
“The current taxation regime is unfairly discriminating against private sector investment, which provides approximately 20% of Victoria’s residential accommodation.
“Whichever party wins the Federal election should immediately introduce financial incentives to encourage investment in new rental accommodation in locations that people want to live. The state government should also equalise the stamp duty paid by investors with that paid by owner-occupiers.”
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