rents will increase only "if market conditions allow", demand and supply determines the vacancy rates. A low vacancy rate usually indicates that the landlord can then increase rent.
Property investors will only be 'forced' to sell thereby increasing supply if they are highly geared and suffering a cash flow problem. These 'fire sales' are mostly evident in Gold coast, WA?
Banks have been tightening lending criteria since the GFC and probably are responsible for most of the high gearing. In Shanghai, investors must put up 50% equity for second investment property. Second property is unlikely to be negatively geared.
We now have a capital gains tax regime fully in place wheras in 86/87 a lot of investors probably sold out when NG came in so that they could realise their tax free gain.
