Greens policy to increase homelessness in Queensland
Aug 2022Karen Millers
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The push for a two-year rent freeze by the Queensland Greens fundamentally fails to understand average rental growth over the past decade and will increase homelessness as even more investors leave the market, according to the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA).
The recent joint industry research with PICA and property academic Peter Koulizos showed that rents had grown at only half the rate of inflation for more than a decade around the nation.
In Brisbane, rental growth was 12.1 per cent over the decade to June compared with cumulative inflation of 25.6 per cent over the same period.
Rents generally fell in capital cities during the first year of the pandemic as well.
According to SQM Research, the asking rent for combined dwellings in Brisbane increased just 10.2 per cent from January 2010 to November 2020.
On a national level, capital city average combined asking rents fell nearly 7 per cent from February 2020 to February 2021.
Combined city asking rents were just 20 per cent higher in August this year than they were in February 2012 – an increase that is still below inflation over the same period.
“The volume of investors in the market has been declining for the past five years due to a variety of reasons, including lending restrictions and continued legislative changes that is motivating many to sell up,” PIPA Chair Nicola McDougall said.
“One only needs to look to the severe rental crisis in Ireland at present, which came about because of government intervention including rent controls, sky-high tax, no deductions, and no grounds evictions. Landlords have left the market in droves and there were seemingly only about 700 homes available to rent in the entire country recently.
“There is no question that is policy will see even more investors leave the Queensland market and cause an increase in homelessness because the rental market is already severely undersupplied.”
PICA Chair Ben Kingsley said claims made by the Queensland Greens appeared to be designed to mislead their followers to suit their political posturing.
“The Queensland Greens are misleading Queenslanders with claims of tens of thousands of vacant properties being available for rent. These private owners have a right to determine the private use of these properties,” Mr Kingsley said.
“Rather than rental freezes, maybe the Queensland Government should be providing a financial incentive for them to be added to the rental pool?
“Instead, the state government is increasing the red tape and costs to adhere to their minimum standard reforms announced, with more coming into play come 1 October this year – not to mention their new ‘Renters Tax’ in the form of the higher land tax rates they are introducing next year.
“At the end of the day, all this policy will do is make tenants pay higher rents with governments also needing to spend more to cover the shortfall they have created in the first place. And when governments spend more – everyone pays higher taxes.”
Rental growth over 10 years vs. inflation
| Locality | Cumulative rent growth Jun 12 to 22 | Cumulative CPI Jun 12 to 22 |
| Australia | +11.0% | +25.6% |
| Sydney | +12.5% | +25.6% |
| Melbourne | +12.5% | +25.6% |
| Brisbane | +12.1% | +25.6% |
| Adelaide | +16.7% | +25.6% |
| Perth | – 2.7% | +25.6% |
| Hobart | +37.9% | +25.6% |
| Darwin | -5.9% | +25.6% |
| Canberra | +15.6% | +25.6% |
ENDS
For more information or to organise interviews, please contact:
Bricks & Mortar Media Director Kieran Clair on 0417 793 447 or via media@bricksandmortarmedia.com.au
About PIPA
Property Investment Professionals of Australia (PIPA) is a not-for-profit association established by industry practitioners with the objective of representing and raising the professional standards of all operators involved within property investment.
For more information visit www.pipa.asn.au
About PICA
PICA is a not-for-profit organisation committed to advocating and lobbying on behalf of property investors’ interest and educating its members on the economic benefits and risks of property investing in Australia.
For more information visit www.pica.asn.au
