According to the Domain website, first home buyers are having trouble with tenants in several of the larger sub-developed cities in Victoria.

Median prices in Geelong, Ballarat and Bendigo are well below $ 600,000. First home buyers are beginning to use the state’s stamp duty relief program to buy places in these locations, leaving less choice for tenants in these areas.

According to statistics from the Victorian real estate agency, the vacancy rates in the three cities have dropped sharply, and the number of flats available for rent has also dropped substantially in the past two years.

Of these, Bendigo has the most serious situation. In the two years to January 2018, the vacancy rate for homes here dropped from 2.3% to 1%.

Geelong’s vacancy rate dropped to 1.5% from 3.5% in June 2016. Ballarat’s vacancy rate dropped to 1.6% from 3.5% two years ago.

Richard Simpson, head of REIV, said real-estate properties that had been rented out by investors were bought by Melbourne’s first home buyers.

“The median house price in rural areas is between $ 300,000 and $ 400,000, which is in line with the first home buyer’s exemption from stamp duty.” Simpson said Victoria’s population is growing rapidly and there are many new job opportunities, The location is also close to Melbourne, all of which have contributed to the highly competitive rental market in the area.

Kristie Sullivan moved to Ballarat six months ago where she rented a three-bedroom apartment in Alfredton, about 5 kilometers from the town center. “Now my lease expired and the landlord wanted the house.” Sullivan has been looking for a house for three weeks. She applied for a house that she thought would be very simple. “The next day I received an email saying that I did not rent it because they had a lot of applicants.”

According to Domain Group, Ballarat’s median rent increased 5.2% to $ 300 in the year to December 2017. Geelong grew 4.3% to 360 yuan. Bendigo increased by 1.6% to 305 yuan.

But real estate professionals say the other popular towns such as Shepparton, Mildura and Warrnambool will not see the situation in the short run, as these are not “commuter towns.”

Shepparton’s housing vacancy rate was 3.3%; Mildura 3.8%; Warrnambool 2.4%.