Qld housing crisis: Stamp duty relief to encourage downsizing for over-55s

As Queensland grapples with a housing crisis, property owners over 55 would be given an incentive to downsize under a new proposal.

Over-55s who sell their homes to downsize would be given stamp duty relief under a push to open up housing stock for young families.

And a dedicated community trust fund would be established to lure philanthropic, private, and government money to deliver a pipeline of social and affordable housing into the future.

The ideas are among a series of proposals that have been raised ahead of the Queensland housing summit to be held next week – which was convened following The Courier-Mail’s Hitting Home series.

Real Estate Institute of Queensland chief executive officer Antonia Mercorella said there were immediate actions that could be taken now, such as giving over-55s stamp duty relief when they downsized.

She said such a move would help over-55s to move into easier upkeep homes, while opening up housing stock for growing families.

“We’d also like to see choice opened for first-home buyers by extending the first home owners’ grant to established properties, to help more people enter the market and take pressure off rentals,” she said.

“Stamp duty reductions could also be offered to long-term investors in exchange for a minimum time commitment to keep an investment property on the long-term rental market.”

Real Estate Institute of Queensland CEO Antonia Mercorella

Ms Mercorella said the government should consider other incentives to prompt existing investors with a property on the short-term letting market to put the property on the long-term rental market.

Rezoning under-utilised commercial spaces that are sitting empty and using them for new housing is another idea that has been floated by the REIQ.

Meanwhile, peak housing advocacy group Q Shelter is making the case for a dedicated community trust fund aimed at building new homes and ending homelessness.

The trust would seek philanthropist, private sector, and government contributions.

Q Shelter executive director Fiona Caniglia pointed to the UK, where she said the Peabody organisation had delivered 104,000 homes for 220,000 people through its trust.

“More people than ever are seeking a home and there is no doubt we need to see an increase in investment in social and affordable housing,” Ms Caniglia said.

“As a new source of capital funding, a trust would further leverage government funding and achieve a net increase in supply.

“Established now, a Queensland housing trust that exists in perpetuity would be an ongoing vehicle to invest in longer-term social and affordable housing delivered by the community housing sector.”

Q Shelter has suggested key providers of infrastructure and services to the 2032 Olympic and Paralympic Games could contribute to such a fund.

Premier Annastacia Palaszczuk will chair the housing summit this Friday, with all three levels of government to be involved.