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REIQ CEO Antonia Mercorella says Queensland Treasurer Curtis Pitt wants people to believe the only way to economic stability is through residential housing construction, but “that’s simply not true”.
Her comment comes in the wake of the state government’s recent announcement that it will not broaden its boosted $20,000 first home owners grant to include established homes.
Ms Mercorella accused the government of not listening to the needs of regional Queenslanders.
“We always welcome measures that help first home buyers get into the market,” she said.
“However, our concern is for the long-term impact and the bigger picture in regional Queensland where new construction is exacerbating the oversupply issues that these markets are facing.
“House values are falling, with some markets as much as 30 per cent below levels five years ago. Continuously adding supply of housing to oversupplied markets is irresponsible and will slow down any future recovery.”
Ms Mercorella said real estate is one of Queensland’s largest employers, proving the state with its single biggest source of revenue through stamp duty and associated taxes.
However, regional Queensland is facing “unique” challenges and the government should be more responsive to them.
“A recent CoreLogic report into affordability identified that regional Queensland’s housing affordability was nearing similar levels to Melbourne,” Ms Mercorella said.
“Wages are flat or are going backwards. The cost of living is higher and it’s harder to save for a deposit. Bankruptcies in regional Queensland are rising, with more than 80 reported last quarter in Mackay alone.
“First home buyers in regional Queensland need more help than their south-east Queensland counterparts, and letting them use the grant to buy an established home would be a good start. And it would help the real estate sector in regional Queensland stabilise. It would help slow or stop the fall of median values and it would help first home buyers get a foot on the ladder.”
Meanwhile, Mr Pitt said the first home owner grant has been a success in the seven months since it was boosted to $20,000.
He said it has provided $46.8 million to help 2,340 people purchase a new house, unit or apartment, well ahead of the $35.6 million to 2,372 people when it worth $15,000.
“Savvy Queenslanders are right to act quickly with the $20,000 boost expiring on 30 June 2017,” Mr Pitt said.
“The strategic purpose of our $20,000 initiative is as much about getting Queenslanders into the property market as it is getting Queensland tradies back on the tools.
"The program is strategically designed to incentivise the construction of new housing which in turn is creating work for the many local contractors, subbies and suppliers who rely on the building industry.
“The building and construction sector creates jobs, stimulates the wider economy and keeps locals employed in the construction sector which is critical in some regions at this challenging time.”
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