There was some good news for investors recently with both major parties in Queensland ruling out the introduction of rent caps after the October 26 State election.
There had been a push from a minor party to freeze rents and limit the frequency at which investors could review their rents.
Rental stress has been an issue in Queensland – just as it has been in every other state and territory – since Covid but putting further regulations on investment ownership isn’t the way to tackle the issue.
In fact, it would encourage investors to sell off their assets – most likely to an occupier market that’s becoming more active ahead of proposed interest rate cuts – which would further reduce the rental pool. The market needs more rentals, not less.
Here at Bromley Real Estate, we’ve never met a landlord who has wanted to make their investment unaffordable. The focus of our investors – and what they trust us to deliver– is finding a tenant who will treat their investment like it’s their own and pay a good return for the opportunity.
REIQ CEO Antonia Mercorella welcomed the commitments from Premier Steven Miles and Opposition Leader David Crisafulli in a recent leader’s debate, saying: “History tells us the best way to stabilise and keep rents in check is to maintain a healthy vacancy rate by ensuring there is 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 some signs of rent stabilisation due to reduced demand from denser household formation, and where affordability is topping out, rent is being adjusted lower to meet the market.”
Ms Mercorella’s comments are supported by recent lending data from the Australian Bureau of Statistics.
For August, the Australian Bureau of Statistics (ABS) reported that the value of new investor loans in Queensland rose 7.9% in the month, seasonally adjusted. This uptake puts Queensland at the front of the nation’s renewed investor interest.
Investor lending has risen 34.2% over 12 months, according to the ABS, albeit from a traditionally low-base.
There are many people tipping investor – and indeed owner-occupier – lending will continue to increase, with several economists forecasting as many as four cash rate cuts over 2025.
If you’d like to find out more about the rental market in your area or elsewhere, or simply want to talk about your investment or portfolio, please reach out to myself.
Gay Basile
Senior Property Investment Manager
+61 421 221 112
07 3115 7128
Disclaimer: The information presented in this article is for general information purposes only and does not constitute professional advice. It should not be relied upon for making property or other investment decisions. Always consult with a qualified financial advisor or other professional before investing in property or any other assets. Bromley Real Estate and its employees are not responsible for any losses, damages, or liabilities that may arise from the use of this information.