Housing measures fall short in budget: REIQ

When the cost of selling your house comes with an additional price tag of tens of thousands of dollars it gives many people pause. — REIQ CEO Antonia Mercorella

THE REIQ welcomes the State Government’s extension of the First Home Buyer Grant boost until December 2017, however the peak body is disappointed the Government has refused to broaden the grant to include established homes in regional Queensland.

REIQ CEO Antonia Mercorella said regional Queensland property markets continued to struggle, with the housing oversupply one of the region’s biggest problems.

“We welcome the goal behind the First Home Buyer Grant, which is to stimulate jobs and this measure has been successful in the south-east corner, with the added benefit of additional supply moderating price growth where demand is strong.

“However, additional supply in regional Queensland is going to further slow these markets and make any price recovery much longer to come into effect,” she said.

Jobs Program

The REIQ also welcomes those measures designed to stimulate jobs in regional Queensland, where climbing unemployment is impacting on the community in devastating ways.

“Unemployment destabilises housing tenure and this uncertainty is damaging to the fabric of the community.

“The Government’s $200 million jobs program, Works for Queensland, delivered over the next two years into regional Queensland, will tackle the need for infrastructure in regional communities and also the unemployment issue head on and we applaud these efforts,” Ms Mercorella said.

Abolish Stamp Duty

The REIQ was disappointed this . Government has chosen to ignore advice from a range of experts on abolishing stamp duty.

“Stamp duty is an onerous fiscal burden that stifles housing mobility and many experts are in agreement, including the Henry Tax Review, that stamp duty should be replaced,” Ms Mercorella said.

“When the cost of selling your house comes with an additional price tag of tens of thousands of dollars it gives many people pause.

“Empty nesters wait longer to downsize and young families wait longer to upsize and this creates inefficiencies in the housing market that are undesirable,” Ms Mercorella said.

REIQ CEO Antonia Mercorella said the real estate sector provided a significant revenue stream for the Government and employed around 50,000 Queenslanders.

“The Government should heed the advice of the experts when it comes to the health and well-being of this vital sector in the Queensland economy,” she said.

“Real estate is facing considerable head winds and the Government needs to acknowledge these challenges and devise appropriate policy responses to ensure its continued growth,” she said.