The property industry in Queensland is responsible for keeping more than 331,000 Queenslanders gainfully employed.
It’s a statistic that’s seen the industry grow to become one of the largest sectors in the state. It’s also seen the value of residential real estate grow to $1.5 trillion in Queensland, and $6.8 trillion nationally.
For a state that’s pinned its economic success on sectors like mining and tourism, the property industry has remained a top performer and a source of stability for the Queensland economy.
So when proposed reforms to Capital Gains Tax and Negative Gearing threaten this stability, it’s up to all of us to pay attention.
Pressure mounds under proposed reforms
The proposed reforms could destabilise our property industry. It could leave investors questioning their financial futures. With one in every three Queenslanders renting — generating a $10.7 billion in annual rental income — destabilising this market will further impact property management and ancillary services.
With fewer buyers purchasing properties and investors trying to avoid crystallising losses, the quantity of sales could decrease and lead to a depressed market.
As a pipeline for infrastructure, as well as other ancillary and maintenance services, the potential impact of any market downfall will be felt far beyond the real estate industry.
New home builds alone will decrease by four per cent — the equivalent of 7,200 dwellings across the state. A slowdown in development impacts jobs, ultimately impeding the state’s growth and creating job insecurity.
The proposed reforms threaten to destabilise our real estate industry; we want to make sure the impacts to Queensland — and Queenslanders — are considered.
The REIQ is having conversations for our industry to ensure all potential impacts are considered within the proposed reforms.
Support us, your fellow property services professionals by standing for stability and registering your impact here.