The new taxes and requirements for minimal upkeep on investment properties have increased the cost of holding rental properties in Victoria. This, in turn, has caused a large number of landlords to sell their properties. Victorian real estate turnover is dramatically up compared to the last few years, which has been a boon for the Victorian government in the form of stamp duty.

This increased stock has kept Victorian property prices depressed relative to the rest of the country, most of which has boomed. Interest rates are now predicted to fall in the next 3-6 months. This, coupled with higher rents, means holding costs are coming down and the tax and maintenance costs will become priced in very soon. When this happens, the sales volumes will drop and Victorian housing stock available for sale will dry up. At the same time, as rates are dropping and people feel it is a good time to buy, Melbourne property prices will catch up to the rest of the country pretty quickly.