What's Driving Investor Demand for New Builds in Victoria

News.com.au journalist Josephine Quattrocchi reports on record investor lending for new builds across Victoria following the federal budget. Loan Market figures show investor loan applications reached record levels in the June quarter, led by growth corridors including Clyde, Clyde North and Craigieburn.

Rental Market Conditions Across Victoria

Oliver Hume Chief Economist Matt Bell said there is not yet evidence linking the shift in investor activity to rising rental prices, noting rental markets have remained tight across the state. He pointed to Melbourne's vacancy rate sitting below two per cent despite softer overall market conditions, with rental growth holding steady for some time.

Interest Rate Outlook and Investor Activity

Mr Bell said further interest rate cuts were likely to draw more investors into the market, and pointed to Victoria's relative affordability compared with other states as a continuing advantage for investor activity.

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