Both the Property Council and Real Estate Institute of Queensland (REIQ) have put forward what should be top of the agenda for successful candidates after the October election.
Property Council of Australia Queensland Executive Director Jess Caire called on 2024 candidates to focus on the housing crisis.
Increased home ownership for more Queenslanders should be the aim, according REIQ’s chief executive Antonia Mercorella.
Ms Caire said the Property Council’s state election strategy championed five pillars.
Restoring housing supply, preserving affordability, planning for growth, future proofing the construction sector and welcoming investment are the key requirements.
“This strategy sends a clear message to those seeking election in October,” Ms Caire said.
“Key in this campaign is restoring Queensland’s competitive edge by reducing prohibitive taxes that are pushing housing beyond the reach of Queenslanders.
“This includes taxes like Additional Foreign Acquirer Duty (AFAD) and Foreign Land Tax Surcharge (FLTS) that was first introduced in 2016 and has been increased yet again in this year’s state budget, ultimately adding increased costs to the delivery of new homes and apartments for Queenslanders.
“This isn’t a tax that simply penalises foreign investors, it penalises Australian developers who rely on international funds to deliver their projects in Queensland, so the cost is passed on to the end user.
“Our research shows that a third of new homes in Brisbane are made up of government taxes.”
Significant hurdles
The REIQ wants overall home ownership at a rate of greater than 70% for Queensland by 2032.
“Our policies are designed to enable home ownership and ease rental pressures while maintaining Queensland’s reputation as a place for property investment,” said Ms Mercorella.
“There are some significant hurdles to home ownership that feel insurmountable to many aspiring home buyers, meaning that would-be buyers are renting for longer.
“Two of the key obstacles standing in the way are coming up with the 20% deposit to avoid lenders mortgage insurance, and stamp duty payable at the outset.
“We’ve proposed three options to help close the deposit gap including expanding and relaxing eligibility for loan schemes or acting as guarantor.”
Helping and older Queenslanders wishing to downsize is also on the REIQ election wish list.
“While we have widespread stamp duty reform in our sights, we would like to see concessions extended for first home buyers and downsizers,” she said.
“Historically, we’ve seen an unwillingness by governments to address the tax ecosystem, but now is the time for the state government to negotiate a better GST outcome with the Federal Government in return for stamp duty reform.
“We’d like to see the First Homeowner Grant extended for use on established housing in regional Queensland where new builds have largely ceased, and for renovations on currently unliveable properties across the state which would revive much-needed stock.”
Ms Mercorella said reversing poorly drafted rental legislation and extending tax incentives to all investors were key pillars in the peak body’s policy recommendations.
“Queensland’s high rental population is largely housed by small private investors, yet they’ve been subjected to five phases of increasingly complex changes to rental regulation,” she said.
“These reforms were focused on providing protection and security for tenants but are largely impractical and unnecessary.
“They have not been balanced with incentives to encourage investment by everyday Queenslanders, like we’ve seen the government extending to multinational investors.”
Handbrakes
The REIQ is also looking for the state government to lift handbrakes evident in local Council’s planning approval processes to help fix our dwelling shortfall.
“Councils need set building approval targets and be incentivised to boost supply by linking these to state government infrastructure grant funds,” she said.
“Along with heritage controls, there are several complex controls and overlays that make construction of medium density challenging, and there is opportunity to streamline and expedite planning processes through greater clarity and clear definitions.”
Improving productivity and the affordability of constructing new dwellings was also imperative to solving the construction emergency.
“To reduce our elevated construction costs, we need to build the labour pipeline with construction industry apprenticeships, revise BPIC procurement requirements without sacrificing worker safety, and incentivise the private sector to adopt modern methods of construction,” she said.
