Office Rents, Hotel Prices Soar Amid Shortage

The survey results show Queensland has the highest capital growth expectations for offices and hotels in Australia, driven by a drying supply pipeline of new buildings to keep up with a growing Queensland.

Property Council Queensland Executive Director Jess Caire said the data highlighted the urgent need to attract and retain investment into the state to help build more of the projects Queensland needs.

"We've known for some time that office and hotel supply in Queensland aren't at the levels they need to be if we want businesses to grow and welcome the increasing number of tourists visiting our state," Ms Caire said.

"We also know that Queensland and Australian-based developers rely on investment from other sources to help build offices, hotels and housing across Queensland."

"This survey also shows that property taxes and charges have now become the top priority for state governments around the country."

Last week's State Budget confirmed the property industry will pay $11.5 billion in stamp duty and land tax over the new financial year, equalling almost 40 per cent of state tax revenue.

Ms Caire said that Queensland's tax settings were prohibitive in welcoming friendly offshore capital looking for attractive markets to invest.

Overall confidence in Queensland's property market softened in June, dropping four points from 124 index points to 120 index points. A score of 100 is considered neutral.

Meanwhile, Queensland also recorded the highest expectations for forward works schedules and staffing levels over the next twelve months, demonstrating an elevated risk to project delivery if Queensland can't secure a stronger construction workforce.

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