Leveraging the global property boom
With Australia attracting record levels of real estate investment, professionals are looking to reposition their careers to capitalise on the property boom, says the University of Technology Sydney’s Gerard de Valence.
Australia’s low interest rate environment, the falling dollar and a stable economy are attracting international investors in record numbers. Colliers International’s latest Australian Investment Review, for instance, finds Sydney is now the third most popular destination for global offshore investors, behind London and Manhattan, and ahead of Shanghai and Paris.
“We already have a well-developed property market employing tens of thousands of people in Australia,” says de Valence (pictured), senior lecturer in UTS’ School of the Built Environment.
“We have pioneered many global trends, have had the supportive infrastructure from professional services firms in place for many years, and our industry is well regulated. All this gives foreign investors confidence.”
The big question we need to ask ourselves, de Valence says, is “do we have the skills to leverage this wall of money that is hitting Australia?”
If Australians don’t have the requisite skills, we risk investments being managed from afar.
“International investment companies are generally run by people with masters’ degrees in real estate, and some markets, like the United States, have well-established academic disciplines in real estate,” de Valence explains.
“When these companies come to Australia, they expect to see equivalent academic qualifications to those back home – and we haven’t been able to meet this expectation in the past.”
Australian companies are also taking their expertise offshore in record numbers, providing new opportunities for real estate professionals.
“In the last two years, around $15 billion in overseas money was invested in commercial property. At the same time, $7 billion went offshore. Australian money needs Australian managers,” de Valence says.
UTS’ Master of Real Estate Investment is the only specialist investment degree in Australia, evolving from the university’s popular qualification in property development. The course covers finance, investment, management, valuation and analysis skills required to succeed in the global real estate investment sector.
“A standard business degree only gets you so far because real estate follows completely different practices and procedures,” de Valence says.
“Managing an equity portfolio can be done from behind a computer, but managing a real estate portfolio requires knowledge of everything from financial literacy and investment strategy to valuation and other property specific skills. We’re proud to offer the only real estate investment course in the entire South East Asian region, one that is not simply a business degree with a few real estate subjects bolted on,” de Valence concludes.
Learn how the UTS Master of Real Estate Investment can give you a competitive advantage in the global property investment boom.