The Real Estate Institute of Queensland (REIQ) has expressed strong opposition to new calculations that will see the Gold Coast City council imposing higher rates on higher floor apartments.
REIQ CEO Antonia Mercorella (pictured above) voiced her disappointment, highlighting the lack of prior consultation and education before the changes were implemented.
More than 12,200 high-rise units will be affected by these new rating categories.
“Colloquially known as a ‘view tax’ but certainly not commonplace in Queensland, this is an arbitrary way of raising rates masked as creating greater equity,” Mercorella said.
Mercorella emphasised the potential negative impact on housing density efforts.
“It’s concerning when you consider we’re all hoping that greater density by ‘building up’ will be part of the solution to our state’s housing crisis,” she said.
Mercorella noted that many people choose apartment living for affordability and shared facilities, not expecting additional penalties based on their floor level.
“They would never have guessed that buying on the 21st floor as opposed to the 20th floor, for example, would come with ongoing penalties,” she said.
The REIQ CEO questioned the logic behind assigning value to views.
“It’s nonsensical for a council to assign a derived value capture for views,” she said. “Views are not public infrastructure that the local government provides which they can seek a return on investment – it’s the natural environment.”
Mercorella pointed out that apartments often place less strain on council services.
“If anything, given apartments share facilities, they are often more efficient and less taxing on council services such as roads, sewage, water, and rubbish collection,” she said.
While acknowledging that elevation can influence sale prices, Mercorella stated that these values are not realised until a sale occurs.
“Ultimately the market will determine the value which will take into account numerous factors unique to that apartment building and the apartment itself,” she said.
Mercorella expressed curiosity about the methodology behind the rate calculations and warned of potential fallout.
“We’re curious to see how these floor tiers and rates categories were calculated, and whether the research stacks up against their perceived value tiers,” she said.
Mercorella concluded with a caution to the council: “Unexpected and unfair rate hikes based on formulas plucked from the air can erode the trust and confidence of buyers and the homeowners who are your constituents – property owners are not a bottomless money pit.”
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