‘Liberation Day’ and the realignment of global defence expectations.
For a moment, forget being on the market roller coaster until the Trump tariff puzzle pieces fall into place and investors regain their footing.
The annual cost of running a trade-exposed liberal democracy just went up permanently.
Property is a capital-intensive industry.
Now more than ever, we need to use other peoples’ money to build our cities.
We need global capital to secure the next wave of housing, offices, industrial sheds and community infrastructure.
Investors are still screening for the most stable risk-adjusted returns. Australia retains stabilising institutional checks and balances, good demographics and raw materials aplenty.
We also have investment pathways increasingly beset by tinkering. We lack the pro-investment mindset that could really set us up for success in the next decade.
The Federal government have heard our calls on this and that is why they have responded to our M&A advocacy with sensible draft exemptions covering residential and some commercial property that would otherwise be caught up in ACCC red tape.
That is also why the Coalition’s proposed whitelist process for trusted investors, streamlining Foreign Investment Board (FIRB) processes and cutting red tape through the Investment Australia office is attractive.
At the very least, whoever wins government should consider some elementary FIRB process improvements from our pre-election platform:
- Review and streamline requirements for FIRB exemption certificates, including application costs, to lessen the regulatory burden for foreign investors delivering housing and city assets
- Exclude passive or non-controversial commercial real estate investment from national security screening processes and legislate the exemption of FIRB application fees on purpose-built student accommodation as a priority.
We are a beautiful but small trade-exposed economy at the bottom of the earth.
The more barbed wire checkpoints we force wholesome foreign capital through, the less will come.
The more states chop and change their approach to institutional investment from overseas, the less will come.
Now is the perfect time to learn that lesson.
Next week: housing and planning ahoy!