calls to reform on ‘investor-bashing’ policiesEmily Holgate New research has revealed the most undersupplied housing markets in Melbourne Almost half Melbourne’s most undersupplied housing and rental markets are in the city’s east New research from data-led buyer’s agency InvestorKit has revealed the postcodes across Victoria with the highest-growing demand and worst shortages in both rental and housing supply amid calls for reforms on the state government’s “investor-bashing” policies RELATED: Where rate rise pain is hitting hardest and how to beat it: PropTrack, DFA ‘Rental catastrophe’: Victoria’s vacancy rate plunges to a record low Victoria’s housing affordability hits worst level in more than three decades InvestorKit’s data shows areas in Melbourne’s east including Heathmont Croydon North and Scoresby were all among the most undersupplied markets in the city Founder and head of research Arjun Paliwal said Victoria’s “investor-bashing policies” were scaring property investors away leading to less available rental homes and as a result higher competition among renters and worsening affordability InvestorKit founder and head of research Arjun Paliwal Heathmont is the most undersupplied Melbourne market with buyers fighting for houses like 376 Canterbury Rd “Victoria already has the highest stamp duty rate in the nation,” Mr Paliwal said “The government’s decision to increase land tax over the next 10 years will only make the situation worse — we’ve already seen the consequences.” OBrien Real Estate Blackburn auctioneer Anthony Molinaro echoed that new investment property taxes introduced this year were “double-edged swords’ “Investors are realising the money they’re getting isn’t covering their repayments and capital growth has started to slow down so they’re getting out of the market and most of those properties are going to owner-occupiers instead of renters,” Mr Molinaro said He added that state government first-home buyer policies such as the Victorian Homebuyer Fund where buyers can enter the market with as little as a 5 per cent deposit were also contributing to supply issues by increasing the number of purchasers in the market “These are bandaid approaches,” the auctioneer said is one of few homes up for grabs in the suburb The agency’s property manager Anna Molinaro added that the lack of housing supply was noticeably hurting renters in the eastern suburbs with many copping $100 a week increases to keep a roof over their heads a lot of those renters are people who thought they would be in a position to purchase but are going to do another year of renting instead,” Ms Molinaro said “There’s a lot of lack of supply at the moment and we have a lot of renters on the market looking to lease properties but we don’t have enough to offer We still have renters offering to pay higher than advertised prices and trying to negotiate due to the competition.” The recently released Victorian Housing Statement has flagged plans to fine agents and landlords who accept rental bidding it is currently illegal to solicit rental bids in Victoria Other suburbs where buyers and renters are feeling the pinch of low stock levels include Mulgrave in the southeast with a median house price of $1.04m Rosanna and Macleod — where the typical house costs $1.2m and $1,136,500 Mr Paliwal added that Melbourne was now a “second-last choice” as an investment destination among capital cities according to a Property Investment Professionals of Australia (PIPA) survey He said a decline in investors would also lead to lower stock mobility “Owner-occupiers tend to hold stock longer than investors leading to less available supply in the long term ultimately hurting housing affordability,” he said Sign up to the Herald Sun Weekly Real Estate Update. 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This is probably not the page you’re looking for new figures showMikaela Day The leafy east is outperforming bayside’s blue-chip suburbs as buyers look for space and greenery SPACE and greenery are trumping sand and sea with the leafy east outperforming blue-chip Bayside areas for property price growth Median house prices have soared more than 80 per cent in three Maroondah suburbs — Croydon South Ringwood East and Ringwood — in the past five years They have left traditionally popular Bayside suburbs in their wake as buyers search for better value A lavish modern-day marvel at 3 Djundaly Rise is at the top end of the Ringwood North market six-bedroom property is seeking $2.55 million-$2.8 million its median house price jumping a staggering 85.1 per cent to $800,000 Ringwood East and Ringwood also recorded incredible growth up 83.8 per cent to almost $901,000 and 81 per cent to $905,000 saw its median price gain more than $400,000 or 71.8 per cent in five years to hit $905,000 Perry Property Advocates managing director Adam Perry said the outer-east’s multitude of schools larger blocks of land and relative affordability were drawing buyers away from bayside areas “Melbourne’s east has become the go-to region fast outstripping the bayside for growth,” Mr Perry said “The leafy east is now far more sought-after than southern sandbelt suburbs “It seems buyers prefer the ‘green belt’ aspect of the east and the perception of space with parks and playing fields aplenty and the Dandenongs on the doorstep.” The areas are outdoing some of bayside’s most desirable suburbs including Brighton which increased 58.3 per cent to $2.77 million which recorded 66.8 per cent to almost $1.819 million both trailing well behind Maroondah’s top growth performers MORE: Michael Klim’s family home set to make a splash CBD Chinatown building seeing double Apartments that’ll make you green with envy Zoned for elite schools, 45 Gracedale Avenue, Ringwood, has plenty of space for a growing family it’s on the market with a $1.15 million-$1.25 million price guide Noel Jones Ringwood and Croydon managing director Brett Freeman said recent improvements to infrastructure and schools were big drawcards “The last five years we have had a lot of major infrastructure that has been improved or rebuilt,” Mr Freeman said “The schools have been improved and have been really successful in the rankings Mr Freeman said buyers also increasingly valued space over proximity to the city “There has been a bit of a shift back to families wanting backyards,” he said “Kids don’t run around the streets like they used to so they want a backyard to kick the footy in.” Mr Freeman said the market had levelled but demand was still strong we will likely see modest growth for the next 12 months or so but there is still good supply and demand as people want to come and live in the area,” he said