The Real Estate Institute of Queensland (REIQ) has welcomed a clear statement from both the Premier and the Leader of the Opposition, confirming that rent caps will not be introduced in Queensland.
This announcement, made during last week’s Great Debate, officially rules out rent control measures post-election, regardless of which party takes power.
The issue of rent caps has been hotly debated in Queensland over the past few years, as the state has grappled with soaring rents, a housing supply crisis, and increasing pressure on the rental market.
Some tenant advocacy groups and political voices have called for rent caps as a way to alleviate the cost of living for renters, who have faced unprecedented rental increases since 2020.
However, the real estate industry has consistently opposed rent caps, arguing that such policies would ultimately harm both tenants and landlords, reducing housing supply and potentially worsening the rental crisis.
REIQ CEO Antonia Mercorella, a vocal critic of rent caps, expressed her relief at the decision, noting that the formal rejection of rent caps restores confidence to both existing property investors and those considering entering the market.
“This confirmation will help restore confidence to existing investors and provides appealing certainty to future investors,” Ms Mercorella said.
“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,” she said.
She pointed to global examples where rent caps have led to negative outcomes, including reduced rental supply, declining property conditions, and stifled tenant mobility.
“They are not the panacea many argue them to be, and evidence from around the world where rent caps have been or still are in place demonstrates the potential negative consequences of such market intervention.”
According to Ms Mercorella, the best way to manage rent levels is by ensuring adequate housing supply.
“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.
While Queensland’s housing market remains under strain, Mercorella noted early signs of rent stabilisation due to shifts in demand and affordability limits being reached in some areas.
“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,” she added.
The REIQ has called on the next Queensland government to prioritise policies that support housing development and ease planning restrictions, enabling the construction of more homes and apartments.
