A LOCAL property expert has blamed Sunraysia’s softening residential property market on the State Government’s new land-tax slug.
Leading property data analyst CoreLogic has reported housing values across the Mildura-Buronga urban area were down by 0.8 per cent in May.
It followed a bounce of 3.8 per cent in the three previous months as the market showed signs of recovering from last year’s slump.
But CoreLogic research director Tim Lawless said the broader trend had “generally been positive” for the local residential market, where values were up 3.4 per cent from a year ago.
“The region has generally been showing a stronger housing trend than the broader regional Victorian benchmark, where values were down 0.5 per cent over the past three months and 0.6 per cent lower over the past year,” he said.
“With a median dwelling value just below $435,000, the region remains relatively affordable, especially when compared with Melbourne or regional Victoria.”
Ray White Mildura managing director Damian Portaro pinned the “flat” local residential market on the State Government’s increased land tax.
Since January 1 the Government reduced the tax-free threshold for land tax from $300,000 to $50,000, as well as imposed new yearly flat fees.
“This is driving investors and landlords out of the market,” Mr Portaro said.
“I really think this is why things have slowed down lately, because of the excess stock coming on to the market.
“I’m not long back from South Australia and agents there say they’re seeing Victorian buyers in droves now.”
He dismissed the overall growth in local housing values over the past year.
“That 3.4 per cent increase is inflation so there’s nothing in it,” he said. “Also, open-home numbers are a leading indicator of how the market’s going.
“They are well down on average.
“Two weeks ago was the worst (for open-home inspections) in about 18 months for us.
“The past weekend was better, but the numbers are still half of what would be ideal.”
However, Mr Portaro said he was optimistic the local residential market would strengthen in the second half of this year.
Meanwhile, local rents increased by 1.1 per cent over the past three months to be 5.7 per cent higher than a year ago.
The latest rise takes the median weekly rental cost to $440 – $457 for a house and $338 for a unit.
In dollar terms, rents have risen almost $24 a week over the past year in Sunraysia.
