Alpine region rent gets cheaper contrary to Victorian market trends

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Rental prices have dropped by more than 10 per cent in the past year at a Victorian alpine hub but business owners say more still needs to be done to make housing affordable for workers.

Renting in Victoria's tight Alpine market has become cheaper according to new data, with changing work habits and a shift away from short-term rentals helping drive down costs.

Myrtleford Real Estate and Livestock business development manager Paula Miotto said many office workers who moved from Melbourne during the peak of the pandemic were having to return to the office, leaving more houses available."We are sort of coming to a bit of a line in the sand, so to speak, where we are not able to increase rents as much as we were back in say 2022," she said.

"We certainly don't have people knocking desperately upon our doors for accommodation that they simply can't find," Alpine Valley Real Estate director Kim McDonald said.The stabilisation of the alpine rental market has been welcomed by businesses that struggled for years to secure staff who earned lower wages.The Alpine Hotel Bright resorted to purchasing homes to house its workers who were struggling to find a rental during the peak of housing crisis during the pandemic.

"We are a fairly stable community but rentals, both residential and commercial, are always very difficult," he said.Rare trend as rentals climb) Mount Alexander and South Gippsland, two popular regional tourist hubs, were the only other areas to record a drop in asking rental prices, at -1.1 per cent and -2.4 per cent respectively.

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Concerns Victoria's raised minimum rental standards will further squeeze rental marketA property lecturer says while the changes could lead to a more equitable quality of life, they also may lead to investors choosing to swap from long-term leases to short-term accommodation.
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