Victorian property experts have forewarned homeowners and buyers of a turbulent year ahead in the state’s housing market, as major government-mandated changes are set to significantly impact the real estate landscape.
One of the most notable changes affecting investment, commercial, and holiday home properties is the adjustment in the land valuation threshold, with the 2024 criteria applying to land valued above $50,000, a substantial drop from the $300,000 minimum in 2023. For affected property owners, this shift will result in a new fee structure, with land valued between $50,000-$100,000 incurring a cost of $500, and those valued between $100,000-$300,000 incurring a fee of $975. Additionally, land valued at more than $300,000 will be subject to a fee of $975 plus 0.1 per cent of the land value above $300,000.
Amidst these changes, the Victorian housing market also faces shifting dynamics that are impacting homeowners’ decisions. For instance, a Ferntree Gully couple, Nathan and Courtney Cuss, recently experienced an unexpectedly swift sale of their unit. Despite concerns about Melbourne’s softening market and rising interest rates, their property, listed in early January, sold in just 10 days, defying their initial apprehensions.
Reflecting on their experience, Nathan Cuss expressed surprise at the swiftness of the sale, particularly considering the time of year and the prevailing market conditions. The rapid sale stands as a testament to the unpredictability and complexity that characterizes the present-day state housing market.
As homeowners and property buyers navigate the intricate and evolving landscape, it becomes clear that 2024 is poised to be a year of significant challenges and adjustments in Victoria’s real estate sector. With government-mandated changes and market uncertainties shaping the trajectory of the property market, industry experts and stakeholders are closely monitoring the situation, anticipating further developments, and supporting homeowners and buyers in adapting to the evolving conditions.
