Melbourne is Australia's most populous city, but Melbourne has always seen much lower house price growth than other cities.
In 2022, Melbourne house prices fell by 4.7 per cent, with the number of new listings for sale plummeting, fewer buyers coming to inquire and property sales plummeting
In 2023, house prices in Australia will rise by 8.1% overall, Sydney by 11.1%, and Melbourne by only 3.5%.
Will house prices rise in Melbourne, Victoria in 2024?
The answer is no
Because the Victorian government wants to start a large tax on the property market, this forced tax increase will make Melbourne's property market usher in a sell-off wave.
Victoria's property market is set to have the most complicated year in its history.
Property tax
Property tax paid by Victorians is expected to increase to an average of $2,120 this financial year, about 9% higher than NSW.
The tax gap between the two states will rise to 21% by FY2024-25, when Victoria is expected to pay $2,304 per capita in property taxes.
By 2027, Victoria's property tax revenue as a percentage of the state's total revenue will be the highest in Australia, climbing from 16.3 per cent to 17.4 per cent.
Property tax is expected to increase to 43.1% of Victoria's total tax revenue by 2026-27.
Residents with multiple properties and businesses with annual salaries of more than $10 million are subject to higher land taxes.
This will have a significant impact on Victorian property transactions.
land tax
From 2024, the Treasury Department will lower the tax-free threshold from $300,000 to $50,000.
For real estate properties valued at $50,000 to $100,000, a flat fee payable on the property investor's land tax bill will start at $500;
The fixed fee payable by the investor is $975 if the value of the real estate property is more than $100,000 and higher for the real estate property worth more than $300,000.
This means that more houses will be taxed.
The adjustments implemented this month have increased the home land tax payment at a median price of $916,000 by almost $1,000 and the government is expected to generate $5.5 billion in revenue over the next 10 years.
In Victoria, developers face more state taxes than other Australian states, as this includes a 50% windfall tax due to land rezoning.
Overseas owners would need to pay an extra $10,000 to buy a property of the same value.
natural gas
Victoria now has a gas ban, adding almost $2,000 to the cost of building a new home and installing heat pump hot water services and induction stoves.
From January 1, the natural gas connection will be phased out for new home approvals.
More appliances will be used to replace gas, which are more expensive than their gas counterparts.
Victoria's ban on natural gas adds almost $2,000 in additional costs to those building new homes with heat pump hot water services and induction cookers.
Short-term accommodation tax
The Victorian government plans to impose a short-term rental tax, which will levy a 7.5 per cent tax on income from short-term accommodation rentals.
and expanding the collection of vacant land tax, which will have a knock-on effect on holiday home owners.
Build a house
The Victorian government has new policies and requirements on how homes are built, which could add about $30,000 to the cost of construction.
The Victorian government also imposes harsh fines on landlords if they accept a rent offered by a tenant that is higher than the asking price.
Vacancy tax
Treasury Secretary Pallas recently announced that the government will soon begin taxing all vacant homes across the state.
Holiday home owners will be charged an additional 1% of the entire property value, or $5,000 for every $500,000
The current surcharge will be increased from 2% to 4% of the taxable land value of the property.
The Victorian government's series of crazy taxation will have an immeasurable impact on the Victorian property market
Stirring up a round of house dumps will spur a wave of house dumps.
Many Chinese Melbourne began to flee.
Jian Cheng recently sold her home in Victoria because she had been plagued by high taxes.
I'm fed up with paying sky-high land taxes.
Like her, there are many Chinese owners,
Jian Cheng搬到了昆州，
And Victoria has become the least favored investment depression in Australia.
Many investors have blacklisted Victoria,
After the Victorian government's land tax adjustment, the number of property sell-offs in Victoria will reach the highest level in Australia.
Because the people feel that the property there has no investment value.
In the 12 months to August 2023, almost one in four landlords in Victoria sold an investment in Melbourne
It will intensify in 2024.
With a number of new policies in effect, the Victorian government will continue to raise taxes, and Victoria will pay the price.
Because property investors have started to sell their properties and look to other states.
Victorian property owners and buyers are set to have one of the most complex years in the state's housing market history.
Property investors have already begun to sell their properties and are looking to other states, while industry groups have warned that more investors could sell their properties next.
More properties are expected to be sold this year, which could hit the state's rental housing supply.
Liu Jun and Wang Yan gritted their teeth to buy a house in Melbourne, completely for their children, and also for their own old age not to have to live on a pension alone.
But with Victoria's new property rules in 2024, including more taxes on investment properties, they have decided to exit the landlord market.
The couple had previously moved to Victoria from Western Australia and had now sold out of their house in Victoria.
From an investment perspective, we intend to exit the Victorian market entirely.
There are so many changes in the Victorian policy housing market that as a landlord simply can't adapt to these new changes.
Why is the Victorian government raising taxes so much?
Because of debt.
debt
Victoria's financial woes continue to intensify. Victoria's total debt will grow to a staggering $178 billion by 2027.
The budget update document at the end of last year showed that the state debt had increased by $6.4 billion compared to the amount projected in the Budget. Victorians are now paying up to $24 million a day in interest.
With billions of dollars in budget overruns on major projects, Victorians will inevitably be hit by more taxes.
Life in Victorians continues to get tougher.
The 380,000 properties subject to the new land tax will pay an average of $878 a year.
The Victorian Labor Government's land tax policy, which will be implemented from this year, will receive $5.5 billion in tax revenue.
In the future, Victoria will have more taxes falling on the people.
What do you think about this?
If you were Victorian, would you leave?
Will you buy a house in Melbourne?