THE Real Estate Institute of Queensland is welcoming the unequivocal declaration in last week’s Great Debate that rent caps will not be introduced in Queensland – effectively ruling them out post-election.
With both sides of politics stating their position on this important issue, it gives confidence that irrespective of the election result, rent caps will not be introduced in the next term of the new government.
REIQ CEO Antonia Mercorella said with rent caps officially off the table, government could focus on pulling the right levers to increase housing supply.
“This confirmation will help restore confidence to existing investors and provides appealing certainty to future investors,” Ms Mercorella said.
“Investors could not be expected to keep bearing the responsibility of housing the majority of Queensland’s rental population in circumstances where their costs were subject to normal market conditions and inflationary pressures while tenants costs were capped by legislative intervention.
“While we acknowledge that rents have materially risen in Queensland since 2020 and are acutely aware of the pressure this has placed on the rental community, it does not change the fact that rent caps are not the answer.”
Ms Mercorella said they were not the panacea many argued them to be.
“And evidence from around the world where rent caps have been, or still are, in place demonstrates the potential negative consequences of such market intervention.”
She said history told us that the best way to stabilise and keep rents in check was to maintain a healthy vacancy rate by ensuring there was adequate housing supply.
“While there’s a long way to catch up, and the light at the end of the tunnel seems dim, we are already seeing signs of rent stabilisation due to reduced demand from denser household formation, and where affordability is topping out, rent is being adjusted,” she said.
