‘No immediate solution’: Homelessness set to worsen after federal election

The housing crisis is set to worsen after the federal election, experts say, as a survey of available stock lays bare the crisis.

Queensland’s housing crisis shows no sign of abating, as new data reveals the state’s cripplingly competitive vacancy rates were further squeezed to record lows.

The release of the figures comes as property experts warned of increasing homelessness with developers stuck in a “holding pattern” until the election is complete and policy certainty boosts investment activity.

Data from the industry peak body on Friday revealed vacancy rates had tightened to record lows in more than half of the 50 local government areas in the state.

Inner Brisbane tumbled to 1.5 per cent in the first quarter of 2022, according to the Real Estate Institute of Queensland, middle Brisbane (5-20km from CBD) fell to 0.9 per cent and outer Brisbane was down to 0.6 per cent.

But regional areas continue to be squeezed further with the Tablelands in the Far North and the Southern Downs along the boundary with NSW remaining staggeringly low at 0.1 per cent.

South Burnett, Gympie and Goondiwindi had a vacancy rate of 0.2 per cent — a ten-year low in each of these regions.

This home in Bellbird Park, Ipswich, is fetching $600 a week.

The lack of stock available has lifted rental prices, creating a knock-on effect of house hunters being pushed to the outer suburbs and increasing the rate of homelessness, property experts warn.

A rundown property in Bellbird Park in Ipswich, west of Brisbane, is currently fetching $600 a week, while a quick search through online sites lays bare the desperate conditions in Logan and Redland, north to Maryborough and further to the far north in Cairns.

The vacancy rate in Ipswich has fallen to 0.6 per cent.

The industry peak body said investors holding off on development would only exacerbate the current housing crisis and lead to increased rental and sales prices for the foreseeable future as demand continues to outstrip supply.

“Any election does put things into a bit of a holding pattern so it’s not surprising developers are pressing pause,” Real Estate Institute of Queensland chief executive Antonia Mercorella said.

“I think it’s pretty evident we have a housing crisis on our hands at the moment and new construction is absolutely essential — particularly in Queensland where we have a population that is growing faster than expected.”

Vacancy rates in Ipswich is currently 0.6 per cent.

This home in Bellbird Park, Ipswich, is fetching $600 a week.

Ms Mercorella said it’s concerning the industry is “pressing pause at the moment” when we should be “forging ahead and working hard to find new supply”.

She said it’s important for all levels of government to get “much better at working in a bipartisan fashion”.

“Because the sales market has been so strong and on account of rental reforms we have seen some investors making the decision to sell – to take advantage of strong sales conditions and with a second wave of tenancy law reform making investment less appealing.”

Ms Mercorella said there has also been land tax reform flagged by our state government late last year.

“I think we’re all pretty confident we are likely to see a cash rate increase given the latest figures on inflation,” she said.

“The Reserve Bank has already flagged the interest rate hikes that may well be affected this year and obviously that always puts a dampening impact on things.”

In 2019, Labor’s proposal to abolish negative gearing was widely viewed as a contributing factor to then opposition leader Bill Shorten losing the unlosable election.

This rejection from voters led to the Labor Party scrapping the policy position.

“But maybe some developers are concerned that if they are elected they may do a backflip on negative gearing and put that back on the agenda,” Ms Mercorella said.