September 30, 2023

2-Sense: Melbourne house prices to jump, but more granny flats are on the way for Victoria?

33 minutes

Welcome to this week's edition of 2 Sense on The Australian Property Podcast, where we take a look at the week's most interesting news headlines and break down what this means for you.

Mortgage Broker Chris Bates and Buyer's Agent Pete Wargent are discussing unit shortage, Melbourne house price jump, and Victoria's new granny flat policy.

Story 1 – Unit shortage looming over Aussie housing market (CoreLogic)

There is set to be a housing deficit of 175,000 by 2027 (NHFIC)

Why? Above average population growth, below average completions

Where? Not everywhere. Brisbane, Perth, Adelaide, some parts of Sydney and Melbourne

What next? Vacuum in units supply until 2027, falling cash rate could fuel a stronger price boom

Story 2 – Melbourne house prices to jump 12pc in 2025

KMPG releases home price forecasts

Why? They always do? Are they useful? Fool or forecaster reports?

Where? Melbourne houses and units, Sydney houses and units, but actually gains before for all of the capital cities out to 2025 due to rising demand, and falling interest rates, and more foreign investment

What next?

Story 3 – Dan Andrews granny flat announcement and 7.5% short stay leases tax

What? Second dwelling in Victoria under 60sqm won’t require a planning permit

Why? Another kneejerk policy reacting to the shortage of dwellings

Where? State of Victoria. NSW has similar policies already?

What next? Boom in building granny flats. Impact on the rental market?

Considerations CGT, subdivision rules, etc?

It appears to be the government’s intention that they could be rented out, though not yet legislated as such.

Busier cities, lower living standards? Risks? Insurance?

Planning permits

Australian Property Podcast resources:

Core Logic

AFR

Victorian Government

Australian Property Podcast online - videos, notes & resources

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Chris' mortgage broking

Amy's new property course

Amy's 100-point checklist (PDF)

Pete Wargent's property coaching

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