Any REIQ split from REIA is short-sighted: Michael Davoren

GUEST OBSERVATION

It appears the Real Estate Institute of Queensland (REIQ) is resigning from the Real Estate Institute of Australia (REIA).

In my opinion it is a very short sighted move.

I am opposed to the move because the issues that impact on and influence the real estate industry in Australia, and therefore the real estate industry in Queensland, are increasingly coming from outside the state and often across national boundaries.

Foreign investment review, federal taxation, money laundering, and Australian Securities and Investments Commission (ASIC) and Australian Competition and Consumer Commission (ACCC) regulatory guidelines and laws are just the tip of the iceberg.

All the more reason for the industry needing a national unified front.

Technology is one of the greatest pressures to bear on the industry. There should have been a 100% industry owned portal well before now, for instance.

Licensing and related activities are just about the only significant priority of the state.

To its credit, the REIQ did an outstanding job in recent negotiations with the Newman government in introducing Queensland’s new Property Occupations Act.

The REIQ is being extremely short-sighted in thinking that it can handle national and international affairs.

This decision to separate from the REIA is not in the interest of REIQ members and also disconnects REIQ members from their industry peers in other states.

For some members, the ability to compete in awards at national levels is a personal and professional goal - the national auctioneering titles, for example. Such national opportunity will disappear as an outcome of the REIQ decision. To take it away from Institute members is a massive blow.

The current real estate institute model – a federation style structure – hasn’t been relevant for years.

As a past president of both REIQ and REIA, I have been involved in many discussions over many years relating to how our Australian real estate industry should have evolved.

The Australian real estate industry’s natural progression should have been toward a fully funded and resourced peak body, which is a model that has served a number of industries well. One example is the pharmaceutical industry where the Pharmaceuticals Industry Council (PIC) was established in 2006 as the peak body for Australia's pharmaceutical and biotechnology industries.

PIC represents a whole-of-sector approach to addressing opportunities and threats to investment in the pharmaceutical and biotechnology industries sector.

This is where the real estate industry should be. Under the peak body model, it would put the industry in a position to show a unified national stance and in the best position to deal with a plethora of major challenges.

While I do not support the path the REIQ has chosen – and am disappointed by its lack of communication with its members around this issue - the REIQ’s actions leaves the door wide open for an alternate peak-performing national body to replace what has gone before. 

If this occurs, it could attract a lot of support from the industry.

Michael Davoren is managing director of RE/MAX Australia and RE/MAX New Zealand. He is a past president of both REIQ and REIA.

REIQ CEO Antonia Mercorella responded to the column pre-publication with:

"The REIQ remains a member of the REIA and our chairman Rob Honeycombe is attending an REIA board meeting today.

"Our sole focus has always been and always will be to represent the best interests of REIQ members.

"Over the last 12 months our central focus has been to serve our membership, and we've delivered exceptional results in this regard.  

"The legislative reforms we negotiated for the Queensland real estate profession speak volumes about the strength of our advocacy and our commitment to the REIQ membership."