The property industry is a pillar of the Australian economy, supporting 1.4 million jobs and generating more than $200 billion in GDP.
Decisions that are made by Australian governments have a significant impact on the growth of our industry, whether taken at local, state and territory, or federal levels.
As reported in this issue of Property Australia, the Governor of the Reserve Bank, Philip Lowe, highlighted the inflexibility of housing supply as a key factor in driving up prices during a period of strong population growth.
While the RBA Governor doesn’t think the correction underway will send the wider economy into recession, it’s a salient reminder of just how important it is to have the right policy settings which support investment, jobs and growth.
From planning and infrastructure through to monetary policy, there are a range of factors which influence investor and buyer confidence. Governments must take a big picture view when adjusting policy. Short term and quick fix solutions risk doing damage to one of our economy’s big engines.
And it’s not just the national view that matters. As I was reminded attending the meeting of the ARES Global Real Estate Investment Forum in Tokyo last week. In a highly competitive global investment market Australia needs to stay ahead of the game to remain attractive to international investors.
Whether it is tax policy, local planning rules or city-shaping infrastructure, the property industry needs policies that promote certainty and confidence over the longer term so we can continue to provide the great places for Australians to live and work.