Queensland’s property industry is standing strong. We’ve shown consistent stability and growth over the past 100 years, remaining a cornerstone of the Queensland economy.
When proposed reforms to Capital Gains Tax and Negative Gearing threaten this stability, as the body representing real estate practitioners in Queensland, we want to make sure the impacts to our industry are considered.
Residential real estate in Australia is valued at $6.8 trillion and Queensland has an estimated $1.5 trillion slice of it, employing more than 331,000 people, and acting as a pipeline for other sectors such as infrastructure and support services.
The proposed reforms have the potential to not only disrupt the industry, but to damage the broader Queensland economy, triggering falling house prices, rising rents and billions in lost stamp duty revenue, but it’s our property services professionals, investors and renters who will be hurt the most.
The projected lost stamp duty revenue could total $2.3 billion, putting a big hole in the government budget.
But if you look beyond the numbers, the proposed reform can impact on a very personal level.
Investors and owners to face increased financial uncertainty
Investors will likely flee the real estate market under the proposed reforms.
Coupled with tightened lending practices, house prices could fall up to 12 per cent nationally. This could equate to the average Brisbane house — valued at $675,000 — losing as much as $81,000 in value. This could push new home owners into a negative equity situation, making investors even more uncertain and significantly slowing down the market.
The proposed reforms will have far-reaching impacts on all property industry professionals.
With fewer investors buying properties, quantity of sales will decline leading to a market depression and reduced stability for property professionals.
This decline will also reduce the need for ancillary and maintenance services, impacting sole operators and small businesses across the state.
Renters hit with additional $95 a week rent
Renters will bear the most immediate economic cost, with rents potentially rising by up to 22 per cent.
To put this in context, the median rent for a three-bedroom house in Brisbane, according to the REIQ Queensland Market Monitor report, is $435 a week. Based on this modelling, renters will have to find at least another $95 a week.
REIQ is having the conversations for our industry to ensure all potential impacts are considered within the proposed reforms. Support us, your fellow professionals, renters and property owners by standing for stability and registering your impact here.