REIQ says state budget is hollow on housing

Queenslanders struggling to get a foot on the property ladder or find sustainable shelter for their family will find little hope in the 2023-24 Queensland State Budget, which lacks a long-term housing plan, according to the Real Estate Institute of Queensland (REIQ).

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Mr Tiller believes property prices have also benefited from buyers trying to pick the bottom of the market. In addition, there are owner-occupiers looking to upgrade with unemployment low and wages growing.

“We often hear about the FOMO during the peak of the market, but the same mindset also occurs when people are trying to buy before the prices start increasing, so you have a lot of people looking to purchase at the moment,” he said.

“We didn’t have the traditional spring market last year with many vendors sitting on their hands as prices soften, so we are anticipating a stronger end-of-the-year with more listings as selling conditions improve. The opportune time to sell is now before the traditional selling season.”

With inflation not falling as fast as the RBA would like, they will be hoping the 12th rate increase in just over a year will have the desired effect. However, rapidly rising house rents are a key driver of persistently high inflation levels.

“With a limited supply of new properties in the construction pipeline and a rising population growth, it is anticipated that rents will continue impacting the housing component of CPI for some time to come,” Mr Tiller said.

REIQ CEO Antonia Mercorella said while the short-term handouts will be welcome reprieve, the budget is a missed opportunity to plan and reshape Queensland to be ready for future growth and opportunity.

“For the past week, Queenslanders have been told to keep an eye on the budget for the answers they seek about housing relief,” Ms Mercorella said.

“With today’s budget, their escalating costof-living demands have been tempered with some much-needed support, but the elephant in the room remains around how Queensland will adequately boost its housing supply.”

BUILD-TO-RENT INCENTIVES

Ms Mercorella welcomed the formalisation of the incentives previously announced for the build-to-rent sector.

“The REIQ have been advocates for incentivising build-to-rent schemes in Queensland, as a way to complement the traditional private housing investor and to help ease the pressures of the rental crisis,” she said.

“It’s particularly pleasing to see the flexibility extended to ensure the developments are mixed use, however questions remain around the compliance requirements and the definition of ‘affordable housing’.

“We also note that the incentives provided to large institutional investors are at direct odds with the way small investors are treated. This puts the future drivers of housing supply at risk if a majority of resources are directed towards build-torent projects.

“We need diversity of housing to meet the ever-changing demands of Queensland’s growing population, so we need to be encouraging investment in all types of housing.”

Housing

Ms Mercorella said increased rental rebates for low-income families and individuals and the concessions to ease cost of living pressures were welcome announcements, particularly with the cessation of NRAS.

“The continued Government Managed Housing Rental Rebate and new electricity Cost of Living Rebates will provide reprieve for Queenslanders doing it tough,” she said.

“However, social housing funding still remains dreadfully deficient with expenditure on social housing in this budget 75% below historical averages, which puts Queensland dead last in the country.

“Sadly, there are no incentives to meaningfully boost supply and increase the current rate of build, while we face a continued shortfall and a 50,000-waitlist growing longer by the day – all at a time when Government seems intent on reducing private housing supply.”

Taxation

Ms Mercorella said this year’s budget had missed a valuable opportunity to reform property tax.

“Stamp duty significantly hinders home ownership, discourages housing turnover, and restricts mobility, and it’s abolishment would open doors in Queensland for many,” she said.

“The windfall from coal royalties gave the Government the opportunity to scrap stamp duty and move to a long-term, broad-based land tax.

“Taxes from property have doubled over the last decade, hitting property investors who provide the vast majority of housing for Queenslanders who rent their homes.

“With the Government expecting to raise $31 billion over the next four years from the property sector, it’s disappointing that there’s no relief in sight for property investors.”