REIQ slams new condominium charges

The Actual Property Institute of Queensland (REIQ) has expressed robust opposition to new calculations that can see the Gold Coast Metropolis council imposing greater charges on greater flooring residences.

REIQ CEO Antonia Mercorella (pictured above) voiced her disappointment, highlighting the shortage of prior session and training earlier than the modifications have been applied.

Greater than 12,200 high-rise items can be affected by these new score classes.

“Colloquially generally known as a ‘view tax’ however definitely not commonplace in Queensland, that is an arbitrary manner of elevating charges masked as creating larger fairness,” Mercorella mentioned.

Influence on housing selections

Mercorella emphasised the potential adverse affect on housing density efforts.

“It’s regarding when you think about we’re all hoping that larger density by ‘build up’ can be a part of the answer to our state’s housing disaster,” she mentioned.

Mercorella famous that many individuals select condominium residing for affordability and shared amenities, not anticipating further penalties primarily based on their flooring stage.

“They might by no means have guessed that purchasing on the twenty first flooring versus the twentieth flooring, for instance, would include ongoing penalties,” she mentioned.

REIQ questioning the justification

The REIQ CEO questioned the logic behind assigning worth to views.

“It’s nonsensical for a council to assign a derived worth seize for views,” she mentioned. “Views will not be public infrastructure that the native authorities offers which they will search a return on funding – it’s the pure surroundings.”

Mercorella identified that residences typically place much less pressure on council companies.

“If something, given residences share amenities, they’re typically extra environment friendly and fewer taxing on council companies corresponding to roads, sewage, water, and garbage assortment,” she mentioned.

Market dynamics and belief points

Whereas acknowledging that elevation can affect sale costs, Mercorella said that these values will not be realised till a sale happens.

“In the end the market will decide the worth which can have in mind quite a few components distinctive to that condominium constructing and the condominium itself,” she mentioned.

Mercorella expressed curiosity concerning the methodology behind the speed calculations and warned of potential fallout.

“We’re curious to see how these flooring tiers and charges classes have been calculated, and whether or not the analysis stacks up towards their perceived worth tiers,” she mentioned.

Mercorella concluded with a warning to the council: “Surprising and unfair charge hikes primarily based on formulation plucked from the air can erode the belief and confidence of consumers and the owners who’re your constituents – property house owners will not be a bottomless cash pit.”

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