Data Analysis February 2025 - Geared For Growth

Geared For Growth

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     10 Melbourne Locations Poised for Price Correction     

Recent analysis of property listings conducted by MCG Quantity Surveyors in January and February 2025 indicates that roughly 13% of Victorian listings are flagged as ex‑rentals – a figure that is almost identical to the 13% observed in NSW. This parity suggests that the widespread narrative of a massive landlord exodus may have been exaggerated. While it is undeniable that Victorian landlords are facing an array of challenging measures, the overall scale of property abandonment appears to be more moderate than sensational headlines might suggest.


Victorian landlords are under pressure from several new government policies. The increased land tax regime, with a significant lowering of the tax‑free threshold from $300,000 to $50,000, has eroded cashflow margins, particularly impacting smaller “mum and dad” investors. Additionally, the introduction of a 7.5% short‑stay accommodation levy – often referred to as the “Airbnb tax” – has added further cost burdens. These levies are designed to shift the market towards long‑term rentals but have, in the short term, heightened operational expenses for property owners.
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