Cairns’ rates budget could follow suit as Brisbane hikes rental rates for short-term stay owners

As the Cairns Regional Council’s special budget meeting approaches, the question is on the table: Will the region’s property owners face the 50 per cent rates hike Brisbane’s Lord Mayor has pushed into place? FIND OUT MORE

THE SQUEEZE of the incredibly small rental property market is being felt across Queensland with some cities taking drastic measures to ensure housing is available.

With Cairns Regional Council’s budget meeting incoming, what can FNQ property owners expect as our rental vacancies remain at an all time low of 0.5 per cent and rising cost of living pressures bare down on Cairns?

In an attempt to force properties back into the general rental market, Brisbane Lord Mayor Adrian Schrinner announced local property owners who list their homes for short-term accommodation will face a 50 per cent rates hike.

Cairns’ deputy mayor Terry James acknowledged the “worryingly low” rental vacancy rate in Cairns but said, ultimately, how property owners decide to let their properties comes down to them.

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“This is a complex issue and will require all levels of government to play a role in finding solutions, and help people find stable and affordable housing,” he said.

“Council will be making announcements on its rates and its rating system at next Wednesday’s Special Budget meeting.

“Certainly, any significant increases, such as those announced in Brisbane, would require careful consideration and consultation with all relevant stakeholders.”

Mr James said while there has been funding in the past to create more affordable housing, more needed to be done.

Zone chair of the Real Estate Institute of Queensland Tom Quaid said the option to follow Brisbane’s lead would be “difficult to apply” in Cairns or Port Douglas, given the large number of both CBD and beachside apartments built specifically for short-term stays in our tourism industry.

REIQ Zone Chair Tom Quaid said any move to slug property owners who list their homes for short term accommodation would be difficult to apply. Picture: Stewart McLean

“If the local Council did go down this path, then I would suggest using the revenue gained to off-set development costs or to provide more incentives to create more supply as that is ultimately the goal here – more homes to house people,” he said.

“The current rental market is incredibly tight with vacancy rates still hovering around the 0.5 per cent mark. That means if an agency is managing 200 properties for rental, just 1 of those is currently vacant and ready to move in.

“It’s been a tight market for years and it didn’t take much to tip it over the edge, but with recent migration numbers to the region, the transition of homes from long-term to short-term rentals, and minimal investment into new housing construction in our region, this is where we are.”

Originally published as Cairns’ rates budget could follow suit as Brisbane hikes rental rates for short-term stay owners