Analysing Australia’s relationship with our Asian neighbours can give an insight to the future of the Australian property market, according to Simon Pressley of Property Investment Advisor & Buyer’s Agent Propertyology.
“With property acquisition and disposal costs being what they are, investing in property needs to be undertaken with a mid-long term focus,” Mr Pressley writes in his Propertyology blog. “So, with large-scale urbanisation unfolding across many Asian countries, it is essential for a property analyst to look at how the resultant structural changes to world economies might impact Australian property markets over the mid-long term too.”
The federal government’s White paper, Australia in the Asian Century, is due to be released in upcoming weeks. Mr Pressley expects this document to outline opportunities and possible roles for Australia in a time where great economic, political and strategic change in Asia is underway.
Mr Presley says that government policy changes and business decisions will have an impact on the demand for that essential commodity we property investors love: accommodation.
“The opportunities for Australia should already be obvious,” he says. “Australia has what Asia wants: energy resources, commodities for construction and manufacturing, agricultural products, education facilities, and quality tourism locations. But it’s not just one-way traffic. Asia has something Australia is short on: capital.
“There is scope for Australian-based private investors to partner with Asian companies to secure the funds they need to get major infrastructure projects off the ground, thus creating enormous economic and employment opportunities and improving facilities, which would otherwise have taken decades,” he says.