MILDURA’S property market can expect continued growth in 2020 but the news is not all good with renters tipped to pay more as the region continues to battle a housing shortage.
Real Estate Institute of Victoria (REIV) figures show Mildura/Mallee has a rental vacancy rate of 1.2 per cent which is the third lowest in regional Victoria behind East Gippsland and Wellington Shire (0.8 per cent) and Warrnambool and Western District (0.9 per cent).
REIV president Leah Calnan said a lack of housing has led to renters in Mildura paying a premium.
“There is an urgent need for more rental accommodation across north-west Victoria,” Ms Calnan said.
“Mildura has one of the lowest vacancy rates in the state with 1.2 per cent compared to overall regional Victoria at 1.6 per cent and metro Melbourne at 2.2 per cent.
“Healthy vacancy rates should be around 4 per cent; most of the state is sitting at 1 or 2 per cent, increasing demand has led to rental price climbing.”
Simon Pressley, head of research at market analyst firm Propertyology, said Mildura’s tight rental market meant a hike in rent was inevitable.
“New housing supply has been short of demand in Mildura for a few years now,” he said.
“Rental stock is also low so we anticipate that Mildura rents will increase during 2020.”
Mr Calnan said changes to the Residential Tenancy Act coming in next year had led to confusion for landlords who were becoming more cautious about losing control over their investment.
She urged the Victorian Government to do more work with landlords and encourage people to rent out investment homes.
“Our members have reported to us that many homes have been sold or are being kept off the market, leading to a surge in housing demand,” Ms Calnan said.
“With competition for housing at a high, many families are struggling to put a roof over their heads, which puts a lot of pressure on local welfare groups.
“New rental homes are being leased out in record time, therefore more owners should be encouraged to put their property on the rental market.”
Mr Pressley said there was nothing to suggest Mildura’s property price growth of the past three years would not continue in 2020.
He said with 16 per cent growth in its median house price to the end of September 2019, Mildura had been one of Australia’s best-performed property markets, superior to every capital city other than Hobart.
“Buyer confidence is understandably already high in Mildura,” he said.
“Several years of a consistently strong local economy is expected to continue play a role in Mildura’s housing demand.
“All-time record low interest rates, improved credit supply, the government’s first homeowner deposit scheme now in play and Mildura’s affordable housing relative to other parts of Australia will add to housing demand.”
Mr Pressley said Mildura’s growth over the last three years was streets ahead of Sydney (2.4 per cent), Adelaide (6.3 per cent), Brisbane (8.3 per cent), Perth (-5.3 per cent) and Darwin (-4 per cent), while Melbourne’s capital growth rate was 12.8 per cent and Hobart’s was 31 per cent.
Mr Calnan said enthusiasm was growing in the Mildura market as prices surged which was leading to properties being “snapped up more quickly”.
“This is the perfect time to get on the market.” she said.
“Growing prices and increasing sales are great news for everybody.
“Mildura continues to be a shining light in Victorian real estate.”
