The Real Estate Institute of Queensland (REIQ) has released its policy paper, “Levelling the Playing Field”, ahead of the 2024 state election.
Developed through consultations with members, key stakeholders, and economists, the paper addresses the current housing and rental crisis while offering strategies for a balanced property market.
The solutions aim to stabilise the sector and benefit both renters and investors, first-time buyers, and downsizers.
Queensland faces one of the lowest homeownership rates in the country, with just 63.5% of the population owning homes – a significant drop from 70% in the 1970s.
REIQ sees stamp duty as a major barrier for both first-time buyers and downsizers.
“Stamp Duty impacts job mobility which affects the productivity of the entire economy,” the report said.
REIQ is pushing for reforms, including abolishing stamp duty for downsizers and transitioning to a land-tax-based model for first-home buyers to make the market more accessible.
REIQ is calling for changes to the First Homeowner Grant (FHG), which currently only applies to newly built properties.
To encourage homeownership in regional areas, REIQ proposes extending the $30,000 FHG to include established homes in these regions. This would help address the low supply of new housing in rural Queensland, where only 20% of new dwellings were built between 2016 and 2021, despite 33% of the population residing outside the southeast corner.
Saving for a deposit remains a significant hurdle for prospective home buyers, as high rental costs and property prices push homeownership out of reach.
REIQ proposes several solutions, such as expanding the Queensland Housing Finance Loan into a shared equity scheme and creating concessional loans to help first-time buyers bridge the deposit gap.
These efforts are intended to make entering the housing market more achievable for those currently struggling to save.
Queensland’s rental market has been squeezed by limited housing supply and increasing demand, but local investors have been sidelined.
“There are significant incentives for foreign multinationals to build rental accommodation, but local small investors have been subjected to increasingly complex regulations,” REIQ said.
To reverse this trend, REIQ proposes revoking some rental regulations and extending tax incentives to local investors to encourage more Queenslanders to invest in rental properties.
REIQ pointed to a housing shortfall of 18,000 dwellings over the past five years as a key driver of escalating property prices.
The institute recommends easing council restrictions and incentivising local councils to boost housing supply through state government grants.
Additionally, to combat the construction emergency, the REIQ suggests improving workforce training and revising state procurement policies to reduce costs without compromising safety.
REIQ’s six-pillar plan addresses Queensland’s pressing housing and rental challenges.
“All Queenslanders need a roof over our heads, whether we rent it or own it,” REIQ CEO Antonia Mercorella (pictured above) said. “This is why it’s imperative that we get the housing policy foundations right for Queensland. It’s clear that all three levels of government need to work together to address this complex problem.”
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