Login
iscover
The Real Estate Institute of Queensland has enjoyed the full support of the RE/MAX network in its calls for the state government to consider a “more balanced and fairer” tenancy framework.
RE/MAX Australia managing director Michael Davoren has “vehemently” agreed with the REIQ that there’s a need for equal protection for renters and the owners of investment properties.
He said that the institute had taken the fight to the state government because the right of the landlords had been completely eroded — “and the pervading perception of landlords as wealthy landowners is false”.
“Fact is that 77 per cent of single-property landlords are ‘ordinary people’ earning less than $100,000 a year,” Mr Davoren continued.
Acknowledging that the Palaszczuk government was quick to respond to the thousands of letters it received in a day, following the launch of the REIQ’s “Everybody Matters” campaign, Mr Davoren said he was pleased by the amendments to rental protections.
“Landlords’ rights were in serious danger of being eroded and more than 600,000 property owners who provide most of rental housing supply to 35 per cent of Queenslanders who rent were potentially at risk.”
A collaboration between the Queensland government and the REIQ is “a positive step towards a balanced and fair framework providing equal protection for renters and owners of investment properties”.
“The amended measures are better aligned to supporting both tenants and landlords facing financial stress due to the pandemic.”
Mr Davoren expressed that he now has greater confidence that leaders in government, as in the real estate industry, are now addressing how COVID-19 is affecting every sector of the population, and how actions taken now will impact Australia post-pandemic.
“This is about shelter… a basic need; and when you talk about shelter — whether for residential or commercial premises, for owner-occupiers, for tenants, for businesses — all roads lead to real estate.
“Mess with real estate and you mess with millions.”
He argued that “misinformation, poor decisions and painting negative pictures of the future real estate landscape have no place right now”.
“We definitely can’t afford to be short-sighted because an exit of landlords divesting themselves of rental properties will make the tenant the real loser. With fewer properties to rent, rents would go through the roof.”
Consumer sentiment — over and above economic influences — will shape real estate markets through coming months, he indicated.
“This is not like the GFC,” he emphasised, before stating that the future for real estate remains bright.
“We are not seeing banks and big business collapsing, but COVID-19 and the federal and state governments’ necessary shutdown measures in response have taken a toll on property sentiment.
“There will be a dip in real estate prices but not a collapse. Property is selling now, in slightly less numbers, but prices are not dropping. The pandemic won’t impact on values to the extent that some seem to be quoting in the media.
“The return of consumer confidence will turn it around quite quickly, and quite possibly inside six months.
“It’s entirely possible that real estate will be the market that comes back the quickest.”
The managing director had taken issue with the fact that the current “protections” would potentially be devastating to a much broader sector of the population. He also expressed “grave concerns” about the source of the information the Queensland government was basing its original decisions on.
“People in the real estate industry — residential and commercial — have access to possibly more sectors of the population than any other, and certainly at the grassroots level,” he offered.
“We in the real estate industry are the experts in our field, just as those in the medical profession are the experts.
“Stop listening to people who are not the experts.”
Leadership needed ‘like never before’
Mr Davoren has also flagged the importance of leadership at this time, which he said is “needed to demonstrate confidence, strength and sensitivity”, and has credited the real estate industry’s effort to pull together.
“REIP (Real Estate Industry Partners), a group of the largest real estate brands and independents in Australia, is across state boundaries and engages all levels of government,” he has observed, while “at the state level, all the institutes are stepping up”.
“Chairman Peter Brewer and CEO Antonia Mercorella have stood up as leaders in a time when good leadership is needed like never before,” he said.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
Newsletter
