RENTS are still on the rise in Sunraysia as vacancies hit rock bottom, amid predictions of little improvement in the local market.
New data by property analyst CoreLogic shows the average rent is now $442 in the Mildura-Buronga area, an increase of 2.6 per cent in the first quarter of 2024 and up 7.7 per cent from a year ago.
Tierney Real Estate director Ryan Tierney said he had never seen such tough rental conditions in the region.
“In the past month to six weeks, our agency has been trading at zero percentage,” he said on Friday. “In supermarket terms, our shelves have been empty.
“We continue to receive inquiries for rentals, but until the past few days, when a couple of relets have come up, there’s been no new stock.
“Tierney Real Estate has been operating for nearly 10 years and we haven’t seen it like this before.
“And I’m pretty sure that for my dad (Frank), in his 50-odd years in real estate here, those sort of numbers have not been associated with the Mildura market.”
The soaring rents have been reflected across regional Australia, where the average rent increased by 6.3 per cent over the past year.
Mr Tierney said additional cost-of-living pressures for landlords were being passed on to renters.
“The extra costs, including increased land taxes, energy bills and council rates, are in play in now,” he said.
“The landlords have no choice but to follow suit and pass that cost on.”
He said that some local investors were selling up after the State Government reduced the tax-free threshold for land tax from $300,000 to $50,000, as well as imposing new yearly flat fees.
“This policy will continue to hurt the property investment market in Victoria,” Mr Tierney said.
“Is there any optimism for renters? I’d like to think so, but it’s not looking good in the near future.
“Costs for landlords and every associated business are still going up, and who knows when they’ll even flatten?”
CoreLogic Australia economist Kaytlin Ezzy said the outlook for regional housing markets would “heavily depend on demographic trends, housing supply, localised economic drivers and the outlook for interest rates”.
