Sale rental shortage

WELLINGTON Shire’s rental vacancy rate has been listed among the lowest in regional Victoria, illustrating a strong demand for rental properties in the area.

Real Estate Institute of Victoria chief executive Gil King said the rental vacancy rate in Wellington Shire, and neighbouring East Gippsland, was among the lowest in regional Victoria at 1.2 per cent, having decreased considerably from 3.6 per cent in the past 12 months.

This is the lowest that the area’s vacancy rate has been since the REIV began collecting this data.

“A vacancy rate of three per cent is required for a healthy rental market, so East Gippsland and Wellington’s is certainly under pressure with not enough properties on the market to meet demand,” Mr King said.

While Wellington Shire’s 1.2 per cent rate falls in line with the rest of regional Victoria, its significant drop in the past year set it apart from other local government areas on paper.

Mr King said the median weekly rent for a house in Wellington Shire had increased from $290 to 2017 to $300 in 2018, and from $310 to $335 in East Gippsland.

“The Victorian property market is under significant pressure at the moment, which is damaging investor confidence and stifling investor activity,” he said.

“This is due to a range of factors including tighter bank lending standards, land tax and stamp duty surcharges for foreign buyers, the passing of the Residential Tenancies Act and mooted negative gearing reforms.”

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