REIQ welcomes bipartisan rejection of rent caps in Queensland

The Real Estate Institute of Queensland (REIQ) has welcomed declarations from both major parties that rent caps will not be introduced in Queensland, regardless of the election outcome.

REIQ CEO Antonia Mercorella said the unequivocal statements made during the Great Debate by the Premier and Leader of the Opposition would help restore investor confidence.

“This confirmation will help restore confidence to existing investors and provides appealing certainty to future investors,” Ms Mercorella said.

The REIQ acknowledged that rents have risen significantly in Queensland since 2020, but argued that rent caps are not an effective solution.

“While we acknowledge that rents have materially risen in Queensland since 2020 and are acutely aware of the pressure this has placed on the rental community, it does not change the fact that rent caps are not the answer,” Ms Mercorella said.

She cited evidence from around the world showing potential negative consequences of rent caps, including decreased rental housing supply, deterioration in property standards, and stifled tenant mobility.

Ms Mercorella emphasised that maintaining adequate housing supply is the best way to stabilise rents.

“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,” she said.

The REIQ CEO noted that there are already signs of rent stabilisation due to reduced demand from denser household formation and affordability constraints.

Ms Mercorella urged the government to focus on increasing housing supply now that rent caps have been ruled out.

The REIQ’s stance reflects its view that market intervention through rent caps could have unintended negative consequences for both investors and tenants in the long term.