Lord mayor defends $100 rate hike for inner-city Brisbane units

Brisbane’s lord mayor has defended a rate rise that will cost inner-city unit buyers an extra $100 a year, saying the measure will ensure “everyone contributes their fair share”.

Brisbane City Council’s budget, delivered on Wednesday, included a new rating category that would apply to anyone buying an inner-city unit or apartment from October 1 this year.

Brisbane residents purchasing an apartment or unit in the inner-city will pay an extra $100 a year under council’s new rating category. Credit: Courtney Kruk

Under the category, the minimum general rate will increase by $25 a quarter, bringing the total rate rise to $100 a year, double the inflation rate.

In an interview with 4BC, Lord Mayor Adrian Schrinner said the increase was inconsequential in the scheme of capital needed to buy into Brisbane’s inner-city market.

“If you look at the new inner-city apartments that are being built, some of them are multimillion-dollar, or many of them are multimillion-dollar apartments,” he said.

“Ninety per cent of units in Brisbane only pay minimum rates, which is $228 a quarter.

“So if you live in a house in the suburbs, you’re paying significantly more than that, yet there’s some very nice apartments in the inner city that are on the minimum.”

Schrinner said the $25-a-quarter rise would not apply to existing inner-city unit and apartment owners, and would still be cheaper than other parts of south-east Queensland.

“It’s just about trying to make sure that everyone contributes their fair share.

“But not a single existing apartment resident will have this increase, it’s only people that newly move in.”

Boundaries of the city core (maroon) and city frame (mustard).Credit: Brisbane City Council

Real Estate Institute of Queensland chief executive Antonia Mercorella said the rate rise sent the wrong message to buyers trying to enter the housing market.

“The REIQ is concerned about the broader message this disproportionate rates increase sends to buyers and investors who are considering apartment living in Brisbane’s inner-city,” Mercorella said.

“At a time when housing supply and affordability are under pressure, we should be encouraging higher-density living in well-connected areas.

“We understand that council’s face rising costs and funding pressures, but it’s important that rate increases are proportionate and aligned with our city’s housing goals.”

Earlier this year, Brisbane’s property market clocked new highs, with research showing the median house price was more than $1 million.

The median unit price climbed to a record high of $632,644, cementing Brisbane’s position as the second-most expensive capital city for unit buyers.

Despite affordability for the median household income slipping further out of reach, local and state governments were continuing to focus on increasing supply and housing density, with the council announcing a review of the city’s low-to-medium-density zoning rules last month.

This followed a proposal this year to reduce car park requirements for more high-density inner-city developments, a measure that could save upwards of $100,000 a unit.

The announcement included plans to extend the “city core” to parts of East Brisbane, Kangaroo Point and Woolloongabba, and the “city frame” to parts of East Brisbane, Herston, Highgate Hill, Red Hill, Toowong, West End and Woolloongabba.

This framework will apply to the new rating category for inner-city units.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.