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Experts caution that reluctance among Victorian investors is expected to lead to fewer rentals over the next 12 months.
Victoria’s rental market is currently experiencing a significant crisis, with MCG Quantity Surveyors reporting that the plummeting rate of new investor loans has further exacerbated low rental stock and increased pressure on the market.
Managing director of MCG Quantity Surveyors, Mike Mortlock pronounced Victoria's rental market to be “in a precarious position.”
“Over the last three months, investor loans in Victoria totalled 10,220, resulting in an annualised figure of 40,880. During the same period, annualised ex-rentals were calculated at 45,924. This means we’re looking at a net loss of 5,044 rental properties, a 1 per cent decrease in the state’s private rental stock,” Mortlock explained.
The surveying firm put forward that the issue extends beyond the existing landlords exiting the market in that potential new landlords are also wary of investing in Victoria.
This broader sense of hesitancy among investors was described by MCG as being exacerbated by new taxes brought in by the Victorian government to pay down its COVID debts and market conditions that have further de-incentivised investment in the state’s rental properties.
“It’s not just about those who are leaving. Many potential investors are now avoiding Victoria altogether, seeking opportunities in other states with more favourable conditions,” Mortlock said.
“This reluctance to invest is further shrinking the available rental stock, making it harder for tenants to find affordable housing.”
In addressing this exodus of Victorian renters, MCG stated that it is integral to “avoid the blame game” and instead focus on constructive solutions that will benefit renters already suffering from reduced rental availability and higher prices.
“We need to resist the temptation to point fingers at landlords, blaming them as the bad guys will only exacerbate the problem, making things even worse for long-suffering renters,” Mortlock relayed.
“Instead, we should work on creating a more supportive environment for property investors, which in turn will help stabilise and grow the rental market,” Mortlock concluded.
MCG Quantity Surveyors has additionally spoken about the worsening underinsurance crisis that will continue to ruin Australians unless decisive action is taken.
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