Queensland’s newly elected Premier, Campbell Newman, is delivering on election promises – and ASAP! The LNP leader has set about making some hotly contested changes to the real estate industry. The Queensland economy and sellers and buyers alike can only benefit from these changes as the property market is geared to boom. Belle Property reports on these swift changes in local legislation.
The real estate market in Queensland has experienced some suppression since the GFC hit, with extra pressure from natural disasters compounding difficult recovery efforts. In recognition of the conditions for the local property market, the LNP government is bringing about some positive changes to make home buying more profitable than ever. The first change announced this week was that the contentious sustainability and mandatory disclosure forms are going. In 2010 the former Bligh government introduced an initiative that forced all home sellers to complete forms on the sustainability features of their property. It looked at everything in extensive detail from window facings and roofing to the star energy rating of white goods. Failure to complete the forms before sale could incur large penalties of up to $2000.
Whilst the initiative was a positive attempt to introduce eco-awareness into the real estate market, it was largely ineffective. The mandatory form was a mechanism allowing potential buyers to compare the energy efficiency of different properties. There were few tangible benefits for buyers, and a lot of paper work involved for sellers – who didn’t perceive the information helped them achieve a stronger sale result. The form supported a preference for sustainable homes – however there is currently no legislation requiring buyers to have an energy efficient home in Queensland. In fact, studies analysing the effectiveness of the mandatory forms showed that the energy efficiency of a home was a minor consideration for buyers. Price, location and number of bedrooms remained the primary drivers behind property purchases. Despite revisions to the forms and an amnesty period, the real estate industry continued to argue on behalf of the market that the form in reality added no value and increased difficulties in a tough industry. Widespread disengagement with the sustainability declaration process was recorded from sellers and from buyers, with less than 20% requesting sustainability reports. With the red tape set to be abolished selling property will become a less fraught and cumbersome process for all involved.
The second change to the property market in Queensland brings about a universal sigh of relief – particularly from first home owners. Campbell Newman’s office has made the announcement that a policy for a $7000 concession on stamp duty for principal place of residence will be re-introduced. This discount will take the pressure off young home owners and families, and go a long way towards restoring consumer confidence.
With sellers unhindered and buyers less burdened by taxes, the property market in Queensland is ripe for new investment and will regain its strength. For more information on market trends in your area, go to the official Belle Property website.