The latest REIV research has found that the availability of rental accommodation remains at its lowest level in 25 years and that there was a further tightening of the rental market during September. Specifically, the research shows that in each of the last two months the number of vacancies in metropolitan and non-metropolitan Victoria has declined.
The number of rental vacancies in Melbourne has fallen from 1.6 per cent in July to 1.2 per cent in September. Over the same time the rate has dropped from 1.5 to 0.9 per cent in the inner city and from 1.7 to 0.9 per cent in outer Melbourne.
The situation is similar in each of Victoria’s major regional centres, in Geelong the vacancy rate is 1.6 per cent, Bendigo is 1.6 per cent and Ballarat there is a 2 per cent vacancy rate.
The continual low vacancy rate will result in more upward pressure on rents, further reducing affordability and access to accommodation.
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 percent 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.
Enzo Raimondo
CEO REIV
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