Whilst the clearance rate hold strong at 77% the quality of what is being sold particularly on the Private Sale market continues to be in decline.

With all the Government strategies in place to make being a landlord harder and more costly we are seeing a drop in investors in the Melbourne property market.

This is causing a further limiting of available rental properties available on the market, which is increasing rental prices.

At some point we will see a market where rents will increase to a point to cover the extra Government costs, thus effecting those that Government was trying help the most by increasing their cost of living.

The Victorian government’s intervention in the property market has been a subject of debate, with some measures causing issues for homebuyers and investors.

• First-home buyer incentives: The government has introduced various incentives for first-home buyers, such as stamp duty exemptions and grants.
  • However, these measures have been criticized for pushing up prices and making it harder for others to enter the market.
• Investor regulations: The government has also targeted investors with measures like extra stamp duty payments and limits on negative gearing.
  • While these measures aim to curb investor activity, they may have unintended consequences, such as reducing the supply of rental homes.
• Rental reforms: The government has introduced rental reforms, including measures to limit rent increases and improve tenant protections.
  • While these reforms aim to help tenants, they may also have unintended consequences, such as reducing the supply of rental homes.
• Foreign investment regulations: The government has introduced measures to curb foreign investment in residential property, including extra stamp duty payments and stricter enforcement of foreign investment rules.
  • While these measures aim to reduce foreign investment, they may also have unintended consequences, such as reducing demand and pushing down prices.
• Housing affordability: The government’s measures aim to improve housing affordability, but some argue that they have had the opposite effect.
  • Housing affordability remains a significant issue in Victoria, with prices continuing to rise and many people struggling to enter the market.

In a changing and challenging market it appears Government intervention is continuing to be one of the biggest issues we face rather than the economy.