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After two years leading the Property Council’s board of directors, outgoing national president Mark Steinert shares his insights, lessons and thoughts on our most pressing issues.

When Mark Steinert (pictured), Stockland’s managing director and chief executive officer, took hold of the reins in 2015, he remarked that property is “one of the most dynamic and exciting industries because it touches on just about every element of the community”.

Two years on, he says: “In fact, the roots of our industry delve far deeper than that. Property in all its forms, is the central construct of the community. It’s where we live, where we work, where we shop, socialise and recreate. It’s also the cornerstone of education, healthcare and tourism.

“It’s been my honour and privilege to serve as president of the Property Council, and it has reminded me what an incredible contribution the property industry makes to the economic and social wealth of our great country,” Steinert says.

Australia has seen further capitalisation rate compression in commercial property since 2015 and “ardent competition” from domestic and new international players for high quality assets.

“We’ve collectively absorbed and responded to enormous macro- and micro-economic change in the last two years, and I’m incredibly proud to work with so many talented people who have helped to lead the important transition that is underway to broaden the Australian economy.”

Steinert says the escalating house prices and increasing disparity in wealth generation and distribution between home owners and would-be buyers is one of the major challenges of our time.

“The uncomfortable truth and consequence of the boom is that most Sydney home owners have made more money on paper over the last five years from the appreciating value of their homes than they’ve earned from working.

“Exhilarating for some and worrying for others in equal measure.”

Steinert says the industry must work closely with government to maintain economic growth while keeping cities like Sydney functioning efficiently – and affordable for key workers.

“Densification is not optional; it’s imperative, and we must ensure it is done well to create liveable, desirable and walkable communities.”

Housing supply and affordability will remain challenging over the next five years, Steinert says.

“Linked to that is the challenge of infrastructure provision, which is so essential to make our cities more efficient and liveable as we seek to accommodate a growing population.

“To put the challenge in perspective, net interstate and international migration to Sydney is running at about 100,000 new residents per annum,” he says. “It’s akin to the entire population of the City of Ballarat, Victoria, visiting Sydney and deciding to stay. Every year.”

“We all know what needs to be done in each major capital city, but we need to start rolling out new infrastructure and enhanced planning solutions now rather than in five, 10 or 20 years’ time.”

The pace of technology change is also causing disruption in marketing, design, construction techniques and the selling process, and may “accelerate obsolescence”.

“All industries are being digitised and disrupted to some degree as friction is removed from the system. This will adversely impact a lot of tenants’ ability to pay higher rents and limit their desire to lock into long, inflexible leases,” he says.

“The most successful organisations in any industry are usually the most agile and adaptive to change. Property is a fast-paced industry, and we’re seeing and experiencing wave after wave of digital disruption that is only accelerating the changes that affect our industry.”

Steinert says the Property Council has driven enduring change over the last two years. The industry has a much bigger voice as a result of the ‘Let property grow the economy’ campaign, and advocacy efforts have ensured that proposals to further tax property are carefully considered, he says.

He also cites sustainability and diversity as areas of achievement.

“The 100 Women in Property program is now touching 0, and a spill of all industry committees nationally to now comprise at least, if not more than, 40 per cent women.”

Steinert says he will continue to be passionate about making sure that the property industry is a “genuine leader” in diversity, education and sustainability.

“We need more diverse voices in property, drawn from a far more diverse talent pool. Young, talented people need to know that they can build exceptional careers in property.”

One of the “toughest challenges and greatest opportunities” in business is to be able to “put yourself into other people’s shoes” he says, and to work together to achieve shared outcomes and goals.

“Empathy, humility and authenticity are invaluable prerequisites for any type of success in managing interpersonal relationships, and business is, and always will be, about relationships.”

 Mark Steinert says his two-year tenure reinforced his deep understanding of “one of the industry’s greatest strengths” which he cites as “its resilience and its adaptability to the cycle”.

“Property is the source from which one in four Australians draw their livelihood; store their wealth or securitise their retirement incomes through their superannuation funds. It accounts for 11 per cent of GDP and contributes more in taxes than any other sector.

“I’ve learned a lot about the important advocacy role of the PCA over the last two years as we seek to influence policy outcomes to ensure we, as an industry, can deliver the best possible outcomes for the communities we serve.

“In this respect, it’s also incumbent on the property industry to earn, maintain and, in many cases, rebuild trust within the community. Trust is effectively our license to operate, and we always need to do the right thing and create communities that function effectively.”

“I’ve also learned that the future of the Australian property industry is in safe hands, thanks to its visionary leaders across the industry, and its next generation of rising stars.”