In the latest episode of Market Watch from The Property Frontline, Australia’s two favourite property experts, Debra Beck-Mewing and Scott Hochgesang, reviewed Australia’s property sales price performance to 30 June 2024.
Debra and Scott reviewed the performance of each key local area – check out the podcast here. They also analysed the overall market performance and discussed the drivers behind the results shown in the graph below.
The BIG news
The major news revealed in the performance data is that Victoria and Melbourne Greater Region property prices are heading south at a very dramatic pace.
The graph shows ‘Melbourne’ has recorded an increase in price of 1.3 percent but this hides the fact that prices in Victoria have been trending down quickly for the past six months.
There’s a range of causes but in short, if you buy or own property in Victoria you automatically become a villain and also considered as an endless source of taxation, fees and charges from the Victorian Government. And this is driving buyers out of the State.
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Home owners and investors started selling out of Victoria during Covid – around 2020 to 2021 – with around 50 percent of those selling out deciding to buy in Queensland. This is one of the underlying reasons Queensland prices have taken a massive increase of close to 16 percent.
The early sellers were followed by more owners and investors, as the Victorian State government continued to introduce new taxation levies, as well as increasing land tax. See below for the summary of land tax changes which will mean :
- Every investor holding property in Victoria will now be required to pay land tax, impacting approximately 390,000 owners.
- Those who previously paid minimal land tax will now experience annual taxes of $5,000 or more.
Where is the market heading?
Debra and Scott covered market expectations for where prices are heading and where to buy in the next 12 months, however the key message is to avoid property purchases in Victoria.
It is expected the big sell off in Melbourne will continue, and few buyers will be interested in the location when there are so many other areas which will perform better.
Home buyers are warned to be very careful as they can expect to see their purchases be devalued over the next 12 to 24 months. This means home buyers could find themselves in negative equity positions, and heralds further problems for the State’s increasingly poor financial position which is already billions in debt.
Click here to take a listen. We would love to hear your feedback and also any questions you would like covered during the session.
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
