‘Out of Touch With Reality’: Queensland Peak Body Criticises Green Party’s Rent Freeze Bill

A general view of properties at North Lakes in Brisbane, Australia, on June 10, 2016. Glenn Hunt/Getty Images

A real estate peak body in Queensland has criticised the Australian Greens Party for proposing a bill that would suspend rental prices in the state, saying it was out of touch with reality.

This came after Greens MP Amy MacMahon tabled a private member’s bill to the Queensland parliament on Aug. 31. If approved, it would cap all rent increases at two percent every two years after August 2024.

Earlier, the Greens made a similar proposal to the federal government, which was similarly rejected.

In a statement, the Real Estate Institute of Queensland (REIQ) said the Greens’ proposal was based on ideology with limited appreciation of economic, commercial and practical reality and that the organisation was disappointed with MacMahon’s comments on property owners.

“Dr MacMahon has been quoted as saying that ‘investors get free money from their tenants and owners are not entitled to treat their investments as assets,” REIQ CEO Antonia Mercorella said.

“Such commentary shows a total disconnect with the commercial realities of rental relationships and the financial responsibilities and risks that owners assume when they purchase and maintain a property.”

The Bill’s Fairness Questioned

Mercorella also questioned the fairness of MacMahon’s proposal, saying property owners had been facing increasing costs of property acquisition and ownership.

“The REIQ acknowledges that rents have risen considerably over the past two years due to extraordinary economic conditions. However, the Greens have conveniently ignored the realities of the last ten years for property owners–which has seen rents remain relatively flat,” she said.

Citing new industry research by PIPA, the REIQ said that at the national level, rents had climbed at only half the rate of inflation for more than a decade, even after accounting for the past year’s rent rises and the current inflation hikes.

In addition, while Brisbane’s cumulative rent growth from June 2012 to 2022 stood at 12.1 percent, the cumulative CPI for the same period soared by 25.6 percent.

A general view of properties at North Lakes in Brisbane, Australia, on June 10, 2016. Glenn Hunt/Getty Images

Speaking about the impacts of the bill, Mercorella said it could incite anger amongst the tenant community against property owners.

“It’s a dangerous and unproductive play to pit tenants and property owners against one another,” she said.

“We would much rather see both parties being encouraged to put themselves in each other’s shoes to gain a greater appreciation for their respective positions–often a positively approached conversation is a productive one.”

The Greens’ Bid To Fast Track The Bill Blocked

MacMahon nominated the bill to be investigated by a parliamentary committee and called for an urgent inquiry. Nevertheless, her attempt was blocked by Labor MPs, resulting in the inquiry taking up to six months.

“Queensland renters do not have six months. The families struggling to find somewhere safe, secure and affordable to live right now do not have six months,” the Greens MP said.

“The tenants on the verge of eviction, (or) anticipating a rent rise, do not have six months.”

Meanwhile, Queensland Housing Minister Leeanne Enoch criticised MacMahon’s bill, saying it was “poorly thought through” and could lead to a decline in housing supply.

Additionally, she said the Labor government supported private owners in maintaining the supply of rental properties.

“We do not want them to potentially sell off their property as a result of extremist Greens legislation,” Enoch told the Queensland parliament.