A STAGGERING 10 per cent or more of private dwellings on the Gold Coast are sitting vacant, according to one of the state’s leading property analysts.
Census results for 2011 show there were 220,000 private dwellings on the Coast, meaning that at any one time the number of empty dwellings was greater than the total number of dwellings in the city of Gladstone. And independent property analyst Michael Matusik says those figures haven’t changed over the years and could be getting worse.
“That volume of stock that is locked up hasn’t shifted much in the past two to three decades,” he said.
“In fact, from 2006 and beyond those figures will have increased as a percentage because of the amount of overseas buyers. In Brisbane 30 per cent of new highrise stock was bought offshore and I suspect that figure would be higher on the Gold Coast.
“If you look at the number of blacked-out apartments in the middle of the week, say on a Thursday night, that would suggest they’re not going to be occupied and we suspect they won’t be for some time.”
Mr Matusik said feedback indicated that many unit owners were happy to let properties lie fallow.
“After they factor in negative gearing, the cost of maintenance, hassles with letting fees and getting things paid on time, it’s not worth having tenants,” he said.
Mr Matusik suggested that instead of a baby bonus, the Government should have implemented a housing bonus, incentivising owners to fully use their housing assets.
“Frankly, a stick would be better than a carrot, with much higher land tax being charged on those residential properties not under regular occupation,” he said. “There is that element that thinks as long as the property increases in value what’s the point in renting it out?
“I do think that property generally is going to be increasingly taxed as the Government needs more money. One way or another it will taxed either directly or indirectly.”
Tenants Queensland chief executive Penny Carr said while the organisation had no formal position on the issue, Mr Matusik’s taxation suggestion made sense.
“People often focus on public housing, getting upset when there’s one person living in a three-bedroom house, for example, but most under-occupancy happens in private homes,’ she said.
“It’s just under-utilising an asset.”
Ms Carr said there were already economic incentives for people to rent out properties.
“It’s hard to know why someone wouldn’t rent one out, but you can’t make them do it,” she said.
Originally Published: http://www.goldcoastbulletin.com.au/