Residz Team 3 min read
“It gives us no joy to say we’ve put a complete boycott on an entire state,” says Propertyology’s Head of Research Simon Pressley.
Investors are being treated like “criminals” in Victoria, he says, announcing the respected property market analysis and buyers' agency is boycotting investing in Victorian real estate.
Mr Pressley said on LinkedIn his agency would instead focus on finding the best investment opportunities in “townships beyond the Victorian border.”
Deep Concerns About State’s Approach
The decision comes in response to what Propertyology views as a series of unfavorable policies, government finances, and economic management by the Victorian State Government.
According to an article in independent online magazine Elite Agent, Simon Pressley has expressed deep concerns about the state's approach towards investors, its increasing debt levels, and the adverse impact of various policies on property investors.
Here are some of the main points expressed by Propertyology.
The Investor's Perspective
Mr Pressley argues that the Victorian Government has continually treated hardworking investors unfairly, targeting them with a range of policies and taxes.
These policies include hefty land taxes, property vacancy taxes, and a 7.5% income loss for short-stay accommodation providers. According to Mr. Pressley, these measures do not create an environment that fosters investor confidence and growth.
Victoria’s “Alarming” Level of Debt An Issue
One of the most significant issues Propertyology points out is the projected debt of $239 billion by 2026-27 and a “daily interest bill of $32 million” for Victorian taxpayers.
Propertyology says these financial woes have led to the introduction of even more taxes, further eroding investor trust and confidence in the government's financial management capabilities, he says.
State’s Rental Laws Added Burden for Landlords
Mr. Pressley also highlights the state's rental laws, which have added additional burdens on landlords, including rent bidding bans, annual rent increase caps, compliance costs, and restrictions when listing properties for sale.
He says all of these factors contribute to a perception that Victoria is not a welcoming place for property investors.
Economic Outlook and Population Decline
Propertyology's concerns extend to the broader economic outlook of Victoria. It says Victoria currently holds the second-worst economic outlook in the nation, trailing only the Northern Territory.
The state faces below-average employment opportunities, population decline, and insufficient government contributions to rental supply, further affecting rental yields and investor sentiment.
The State Government's Responsibility
According to Propertyology, the Victorian Government's approach to investors has the potential to significantly restrict the state's ability to fund future infrastructure, attract job-creating investments, provide sufficient housing supply, and retain its existing population while attracting newcomers.
Simon Pressley points out that the government's approach towards investors has left Propertyology with no choice but to shift its focus away from Victoria, despite its historical investments in the state.
The agency believes that this decision is essential to protect the interests of its clients and to send a clear message to both the government and property investors about the consequences of current policies.
Situation at Crisis Point for Renters
The news of the boycott comes as new data shows renters are having an increasingly difficult time finding an affordable place to live.
PropTrack’s Rental Report September 2023 shows that Melbourne gets 31.4 enquiries per rental listing, third behind Perth (50.3 enquiries) and Adelaide (40 per listing).
The national median weekly advertised rent on realestate.com.au at the end of the September quarter was $550 per week, up 3.8 per cent over the quarter and 14.6 per cent over the year.
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Image: Simon Pressley, author at Elite Agent