Queensland property industry warns against rent control speculation

Queensland’s leading property industry bodies have jointly called on the state government to rule out rent controls, warning of potential negative impacts on the rental market.

The Property Council of Australia Queensland, Real Estate Institute of Queensland (REIQ), and Urban Development Institute of Australia Queensland (UDIA) expressed concern over reports that the government may be considering rent caps ahead of the upcoming election.

Property Council’s Queensland Executive Director Jess Caire said rent controls would deter new housing supply and undermine investor confidence.

“Any government intervention in the setting of private rents—whether through rent caps, freezes, or controls, whatever name you want to give it—has the same chilling effect on investor confidence,” Ms Caire said.

REIQ CEO Antonia Mercorella urged the Miles government to clarify its position on rent controls.

“If rent caps – or another form of rent control – were to become a reality, not only would it signal broken promises and a major backflip from the Miles Government, but it would be the last straw for many investors who had endured a legislative onslaught over the last four years,” Ms Mercorella said.

UDIA Queensland CEO Kirsty Chessher-Brown highlighted the existing shortage of homes in Queensland.

“Our research shows the shortage of homes will continue to worsen in Queensland, as there is already no way our industry can meet government’s new homes targets,” Ms Chessher-Brown said.

The industry bodies argued that rent controls have proven ineffective in other markets, citing examples from the ACT and international experiences.

In the ACT, which has a form of rent cap, rents have increased by 14 per cent since 2019, significantly higher than the national average of 4.6 per cent.

The property industry representatives called on Premier Miles to confirm that rent caps and other forms of rent control are not being considered, to restore investor confidence in the Queensland market.