The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterTue 30 May 17

Industry Group Seeks To Break Foreign Investment Stigma

iStock-659959264_620x380

A new ACIL Allen Consulting report, commissioned by the Property Council of Australia, has highlighted the strong and substantive benefits to the economy of foreign investment in commercial and residential real estate.

Ongoing union and political campaigns against foreign investment have reportedly motivated the creation of 

the report, which has been released at a high-level summit of domestic and international property and finance leaders at Parliament House.

“We cannot let the myths about foreign investment continue to go unanswered. Foreign investment in commercial and residential real estate is a vital part of the Australian economy," Property Council Chief Executive Ken Morrison said.

"Too many political leaders are now too frightened to defend what is an essential part of the Australian economic DNA and this is dangerous.

“This report answers the myths around foreign investment in real estate. Foreign investment in real estate underpins growth, keeps people in jobs and contributes to our national income.

“Foreign investment in real estate gets new projects off the ground, increases housing and office stock, boosts our national capacity and increases tax collections to all levels of government.

“We have seen many state governments and the federal government introduce new taxes and charges on foreign investment. Ultimately, these are taxes on Australia’s attractiveness as a place for investment.

“The critics of foreign investment argue that it drives up house prices. According to Treasury, the presence of foreign investment adds just $80 to $122 to the price of a Sydney or Melbourne home," he said.

Mr Morrison said the modelling shows dramatic second-order impacts of a reduction of foreign investment in residential and commercial real estate.

The Property Council Chief Executive said if foreign investment in new commercial buildings fell by 20 per cent, it would result in a cumulative fall in Australia’s GDP of $21.4 billion over 10 years, reduced annual GDP by $3.2 billion and result in a loss of $8 billion in Commonwealth revenues and $2 billion in state revenues.

“In total, the loss of GDP would be akin to the loss of Australia’s coal-fired electricity industry," Mr Morrison said.

“If foreign investment for new residential dwellings fell by 20 per cent it would reduce Australia’s economic output by a cumulative $14.8 billion over 10 years, reduce annual real GDP by $2.3 billion and result in a $5 billion loss in Commonwealth revenues and $1 billion in state revenues.

"In total, the loss of GDP would be akin to losing three times Australia’s renewable energy industry.

“Currently foreign investors directly fund $20 billion in commercial real estate. Approved foreign purchasers funded up to $7 billion in residential development in 2015-16.

“The report demonstrates that Australia has one of the most stringent regulations for foreign investment in real estate. This is even though real estate, unlike every other good, cannot be taken out of Australia.

“Australia is currently completing an unprecedented 26 years of economic growth. Foreign investment in real estate has been an integral part of this success. Taxing and discouraging new foreign investment will result in a loss of jobs and national economic income during a time when it is vitally needed.”

ResidentialAustraliaFinanceReal EstatePolicyPolicy
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Billbergia’s John Kinsella: Whiskey, Fun and a Fear of Heights

Vanessa Croll
8 Min
Exclusive

Paperwork to Plate: The Rise of Brisbane’s Midtown

Taryn Paris
6 Min
Wel Co's Thornhill Park, 40km west of the Melbourne CBD.
Exclusive

Waiting for Victoria: Why Wel.Co says State Planning isn’t Working

Marisa Wikramanayake
6 Min
Woods Bagot Principal Alex Hall and Penny Place Adelaide
Exclusive

Amplified Affordability: Woods Bagot Cracks Housing Cost Code

Leon Della Bosca
8 Min
Goodman Brisbane Industrial EDM
Exclusive

Olympics a ‘Springboard’ for Brisbane’s Industrial Age

Clare Burnett
6 Min
View All >
Mt Coot-tha EDM
Infrastructure

Vision Unveiled for Brisbane’s Mount Coot-tha Precinct

Clare Burnett
High-density residential construction in Melbourne
Finance

‘More Private Credit than Cranes’ But That’s About to Change for Melbourne

Taryn Paris
Ocean reef marina in perths northern beaches will include a new marina, business area, dining and homes
Development

Perth’s Ocean Reef Marina Development Site Sale Looms

Renee McKeown
The 1000-home precinct north of the WA capital will include the city’s first coastal pool and protected man-made beach…
LATEST
Mt Coot-tha EDM
Infrastructure

Vision Unveiled for Brisbane’s Mount Coot-tha Precinct

Clare Burnett
3 Min
High-density residential construction in Melbourne
Finance

‘More Private Credit than Cranes’ But That’s About to Change for Melbourne

Taryn Paris
7 Min
Ocean reef marina in perths northern beaches will include a new marina, business area, dining and homes
Development

Perth’s Ocean Reef Marina Development Site Sale Looms

Renee McKeown
2 Min
Westmead EDM
Residential

Two-Tower Scheme Ends Parramatta Planning Odyssey

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/industry-group-break-foreign-investment-stigma