Low capital gains and the large increase in holding costs are prompting more residential property investors to bail out of inner Melbourne and Sydney markets, data from CoreLogic shows.
“I think this reflects the relatively weak growth outcomes we’ve seen across Melbourne, and it looks like that’s set to remain at least for the rest of the year with stock levels pushing higher and getting to above average levels,” he said. Investor-owned listings now account for 34 per cent of all new listings in Geelong, up from 32 per cent during the three months to June. In Whittlesea-Wallan, it increased by 4.4 percentage points to 32.7 per cent, and by a similar amount to 44 per cent in Glen Eira.
Melbourne’s apartment sector has largely lagged the broader market performance in the past five years according to CoreLogic. In Yarra, apartment prices increased by 1.1 per cent over the past three months and were up by 2.8 per cent over the year. However, values languished over the past five years, adding just 1.4 per cent.
In Sydney, investor-owned listings also climbed in the inner city, Ryde and te eastern suburbs in the past three months, rising by 17 per cent, 35 per cent and 29 per cent respectively.