State plans to acquire about 1,300 investment properties
The Queensland government has announced its intention to purchase approximately 1,300 properties as part of an effort to bolster the state's housing stock.
Housing Minister Meaghan Scanlon revealed that the government aims to acquire around 30% of the 4,148 investment properties that currently receive federal subsidies through the National Rental Affordability Scheme (NRAS), The Australian reported. This move comes as the scheme is set to conclude in two years.
Unlike the Victorian government, which recently introduced a tax on vacant properties left unoccupied for six months, Scanlon ruled out implementing a similar measure in Queensland. Instead, the government plans to collaborate with community housing providers and private investors to identify NRAS properties that are available for purchase at reasonable prices, according to The Australian.
“We will work with key community housing providers and individual owners for the purchase of NRAS houses where there are willing sellers that represent value for money,” Scanlon told the Queensland Media Club. And while this might not be the right option for every NRAS owner, we anticipate there will be enough take-up to deliver a significant boost to housing stock. While we build the homes, this significant announcement will ensure that we can keep affordable and social homes in the system.”
The NRAS initiative, introduced during the Rudd era, aimed to incentivize investors by offering subsidies for renting out their properties below market rates to lower-income households, The Australian reported. However, the scheme was scaled back by the Abbott government in 2014, resulting in over half of the 10,000 NRAS properties in Queensland being excluded. The program is now scheduled to conclude by mid-2025.
To facilitate the acquisition of NRAS properties, the state government will invite expressions of interest from current investors participating in the scheme. These investors will have the opportunity to nominate their properties for sale to the government. Scanlon refrained from disclosing the anticipated cost of the buy-up until the level of community interest was determined, The Australian reported.
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In addition to this initiative, the Queensland government has already partnered with community housing providers and acquired approximately 556 properties to maintain as social and affordable homes. Furthermore, the government is exploring the possibility of constructing modular homes, particularly in regional areas such as Cairns. The government is also considering purchasing retirement homes and hotels that can be converted into residential accommodations.
Scanlon did not provide a specific timeline for the release of the state government's 20-year housing plan, despite almost a year passing since Premier Annastacia Palaszczuk's housing summit. She emphasised the importance of exploring alternative methods of construction, such as modular manufacturing, to address the constraints faced by the construction industry and increase housing supply.
“We’re not going to stop the construction of hospitals and roads because they are also really important, but we’re looking at ways that we can try and make sure that we support those different elements in the construction industry where there might be a bit of capacity,” she said.
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