Gold Coast apartment owners blindsided by 'view tax'

The Real Estate Institute of Queensland (REIQ) is calling out concerning new calculations which will see Gold Coast City Council collect higher rates for higher floor apartments.

REIQ CEO Antonia Mercorella expressed surprise and disappointment in the way the changes to rating categories for over 12,200 high-rise units were executed by the local Council, with no prior consultation, education, or phasing of the introduction.

“Colloquially known as a ‘view tax’ but certainly not common place in Queensland, this is an arbitrary way of raising rates masked as creating greater equity,” Ms Mercorella said.

“It’s concerning when you consider we’re all hoping that greater density by ‘building up’ will be part of the solution to our state’s housing crisis.

“People are choosing apartment living over freestanding houses largely due to greater affordability and access to shared facilities.

“They would never have guessed that buying on the 21^st floor as opposed to the 20^th floor, for example, would come with ongoing penalties.

“It’s non-sensical for a Council to assign a derived value capture for views. Views are not public infrastructure that the local Government provides which they can seek a return on investment - it’s the natural environment.

“If anything, given apartments share facilities, they are often more efficient and less taxing on Council services such as roads, sewage, water and rubbish collection.

“We appreciate that generally speaking, elevation can attract a premium price at the time of sale, particularly when the penthouse is concerned, noting that unless you sell, this value isn’t realised.

“However, ultimately the market will determine the value which will take into account numerous factors unique to that apartment building and the apartment itself.

“We’re curious to see how these floor tiers and rates categories were calculated, and whether the research stacks up against their perceived value tiers.

“We caution Councils that unexpected and unfair rate hikes based on formulas plucked from the air can erode the trust and confidence of buyers and the homeowners who are your constituents – property owners are not a bottomless money pit.”

Media enquiries:
Claire Ryan, Media and Stakeholder Relations Manager, The Real Estate Institute of Queensland
M: 0417 623 723 E: media@reiq.com.au

Read another REIQ media release: REIQ bids for bold housing reforms in State Election policy paper.

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