Published by SSKB Strata Management | Queensland’s trusted Body Corporate management experts
Queensland has one of the highest concentrations of investor-owned strata property in Australia. Investors currently account for more than 40% of Queensland property finance commitments — and in suburbs like Surfers Paradise, Broadbeach, Southport, and South Brisbane, that proportion is significantly higher. These are Body Corporate buildings where investor-owners have long outnumbered the people who actually live there.
The 2026–27 Federal Budget has introduced changes that will, over time, make established strata properties less attractive to new investors. For Body Corporate committees across Southeast Queensland, the more important question isn’t what this means for investors’ tax returns. It’s what it means for how your building is governed, funded, and maintained when that ownership mix starts to shift.
Queensland’s Strata Market: Built on Investor Demand
To understand the significance of the budget changes for Queensland Bodies Corporate, it helps to understand just how investor-driven the state’s apartment market is.
The Gold Coast continues to dominate Queensland’s unit market, with Surfers Paradise retaining the top position for unit sales, supported by Broadbeach, Southport, Mermaid Beach, and Hope Island. These are almost exclusively strata-titled properties — and historically, a large proportion of lots in these buildings have been owned by investors rather than residents.
Brisbane’s unit market growth surged 16.9% over 2025, significantly outpacing houses. Median unit values now sit around $807,000, delivering gross rental yields of 4.1% — making units an attractive proposition for investors looking for reliable income streams.
According to Smart Property Investment data from March 2026, investors account for 40.1% of Queensland finance commitments — one of the highest proportions of any state. For Body Corporate committees, this matters because investor-owned lots are not just a demographic statistic. They shape how committees function, how decisions get made, and how well buildings are maintained.
What Changed in the 2026 Federal Budget
From 1 July 2027, investors who purchase an established residential property after Budget night (12 May 2026) will no longer be able to offset rental losses against their salary or other personal income. The direct tax benefit that has made Queensland apartments attractive to middle-income investors — particularly the high-yield, high-density stock on the Gold Coast and inner Brisbane — is fundamentally restructured.
The 50% Capital Gains Tax discount is also being replaced with a cost-base indexation model and a 30% minimum tax rate, applying to gains accrued from 1 July 2027.
Existing investors are grandfathered for negative gearing — but not fully exempt from the CGT changes… the CGT changes apply prospectively to gains accrued from 1 July 2027 onwards, regardless of when the property was purchased.
New builds remain fully exempt. Investors can still access negative gearing and CGT concessions on newly constructed dwellings — a deliberate policy to direct capital toward new supply rather than established stock. Given that new apartment completions on the Gold Coast are forecast to fall from 1,900 units in 2025 to just 1,400 in 2026, with only around 50 relatively certain to be delivered in 2027 (Property Council of Australia), this exemption for new builds may offer limited relief in Queensland’s tightest markets.
Three Shifts That Will Affect Queensland Body Corporate Committees
1. The Owner Mix Is Going to Change — and That’s Not Necessarily Bad
In buildings where investors have historically dominated lot ownership, the budget changes may gradually shift the balance toward owner-occupiers. This transition will be slow — but for committees in Gold Coast high-rises and inner-Brisbane apartment blocks, it is worth anticipating now rather than reacting to later.
Owner-occupiers bring different priorities to Body Corporate decisions. They live with the consequences of deferred maintenance, under-resourced sinking funds, and poorly managed common property.
In buildings that have long struggled with investor apathy — low AGM attendance, resistance to levy increases, difficulty forming quorums — this shift, if managed well, could meaningfully improve governance outcomes.
2. The Lock-In Effect: Existing Investors Have a Strong Reason to Stay
Grandfathering creates a powerful financial incentive for existing investors not to sell. If they sell, the next buyer loses the tax benefits. This creates a lock-in effect — existing investor-owners are likely to hold their lots longer than they otherwise would have.
For Queensland buildings already carrying a high proportion of investor lots, this means the ownership profile may not change as quickly as the policy change might suggest. In the short term, expect less turnover, not more. Committees that have been waiting for natural attrition to improve engagement will need to be more proactive — through better communication, more accessible AGM processes, and stronger committee recruitment.
3. New Investor Capital Will Chase New Builds — Not Your Building
Because new builds retain full tax concessions, investor demand is increasingly likely to flow toward newly constructed strata product. In a market like Southeast Queensland — where Brisbane needs roughly 14,000 new dwellings per year to keep pace with demand yet only 1,523 apartment units were completed in 2024 (Australian Property Experts) — the pipeline of new stock competing for investor capital may be limited in the short term. But over a five to ten year horizon, buildings entering the market with full tax concessions attached will have a structural advantage in attracting investor buyers.
For established schemes, the implication is clear: buildings that are well-maintained, financially stable, and proactively managed will hold their competitive position better than those carrying deferred works and underfunded sinking funds. That’s not a response to the budget. It’s just good Body Corporate management.
What Queensland Committees Should Do Now
Review your sinking fund position. In the current construction cost environment — with material and labour costs elevated across Southeast Queensland — a sinking fund forecast more than three years old may be materially underestimating what upcoming capital works will cost. A funding gap left unaddressed today becomes a special levy tomorrow. (See SSKB’s Sinking Fund Health Check for a full guide to assessing your building’s position.)
Understand your owner profile. Know what proportion of your lots are investor-owned versus owner-occupied, and where those investors are located. A building where 70% of lots are owned by interstate investors faces very different governance challenges than one where most owners are local.
Strengthen communication and engagement. In investor-heavy buildings, meaningful communication is the most effective tool a committee has. Regular updates, transparent financial reporting, and accessible AGM processes reduce the apathy that leads to poor levy decisions and deferred maintenance.
Talk to your strata manager about what’s changing. The legislative and financial environment for Queensland Bodies Corporate is evolving — the budget changes add another layer of complexity on top of existing obligations under the Body Corporate and Community Management Act 1997. Professional management is increasingly a strategic asset, not just an administrative one.
The Bottom Line
Queensland’s strata market has been built on investor demand. That demand isn’t disappearing overnight — but it is shifting. For Body Corporate committees in Brisbane, the Gold Coast, and across Southeast Queensland, the buildings that will navigate this transition best are those that are already well-governed, financially sound, and proactive about owner engagement.
The budget has changed the investor equation. It hasn’t changed what makes a Body Corporate building worth living in — or worth owning.
Ready to assess how your building is positioned? Talk to the team at SSKB — Queensland’s experienced Body Corporate management specialists.
This article is general information only and does not constitute financial or legal advice. Queensland Body Corporate requirements are governed by the Body Corporate and Community Management Act 1997. For advice specific to your scheme or investment, please consult a qualified strata manager or financial adviser.