Will the LNP Step Up to Fix Queensland’s Housing Crisis?

With the LNP newly elected to lead Queensland, they have a unique opportunity to take decisive steps towards addressing the state’s housing crisis. In our Sunshine Coast Property Market Update (SCPMU) we clearly highlight that the housing crisis we face today didn’t happen overnight. As early as 2010, cracks in the housing system were apparent, driven by policy delays, increasing development costs, and a lack of coordinated housing initiatives at both state and federal levels. If Queensland’s new government is serious about resolving these issues, now is the time to prove it.

One of the biggest hurdles to housing affordability in Queensland is the high cost of state fees, including stamp duty. Originally intended to be phased out with the introduction of GST, stamp duty has continued to burden first-time homebuyers, downsizers, and investors alike.

In his recent Hot Property interview, our own Mal Cayley emphasised that eliminating or significantly reducing stamp duty would be a meaningful first step toward creating a more accessible property market. With other states like Victoria already offering partial reductions for specific developments, Queensland could explore similar or broader cuts to boost housing supply and affordability.

Listen to Mal on 91.1 Hot FM’s Hot Property segment discussing stamp duty:

In our SCPMU we reference the Property Council of Australia’s ‘Stacked Against Us’ report which shows that over 30% of a new dwelling’s cost in inner Brisbane comes from government taxes and regulatory fees. Reducing these costs, particularly for projects in high-demand areas, would make it more feasible for developers to deliver affordable housing. The Sunshine Coast’s housing market, like many regions across Queensland, is in desperate need of these measures, as current costs have led to plummeting dwelling approvals and increased market strain.

The LNP’s new leadership can start tackling the housing crisis by adopting comprehensive policy reforms that support both private investors and first-time buyers. Incentivising property investment would encourage more Australians to enter the rental market, helping to alleviate the rental crisis that has put many Queenslanders at risk of housing stress. As the Property Council of Australia has pointed out, simply fueling demand without addressing supply shortages only exacerbates the issue. By reforming tax policies and development fees, Queensland’s government can encourage sustainable housing growth for the long term.

Queenslanders have voted out a government that dropped the ball on housing and are looking for leaders to make real changes. If they prioritise housing, support targeted tax reforms, and incentivise housing investment, the LNP has the chance to demonstrate real leadership in fixing the state’s housing crisis. The need for action is urgent, and Queenslanders will be watching closely to see if their new leaders rise to the challenge.

For more on How We Got Here with this current housing crisis, download your FREE copy of the Sunshine Coast Property Market Update and look for the bonus downloads that breakdown all the factors that lead to this current crunch.