Australia has recently been ranked as one of the most transparent real estate markets in the world, for both general market conditions and environmental sustainability, a new Index has revealed.
Ranking third in transparency of 28 countries recorded, in Jones Lang LaSalle’s 2012 Global Real Estate Transparency Index, the importance of sustainability is never more crucial, said director of sustainability at Jones Lang LaSalle Australia, Joe Quintal.
Australia fell just shy of the United Kingdom and France, who were recorded as first and second in the ranking respectively, for the sustainability ranking. In terms of general transparency, Australia also reported a ranking of third, short of the United States and the United Kingdom, at second and third.
“The inclusion of a new index specifically assessing sustainability transparency … demonstrates the importance of environmental sustainability as an emerging key transparency factor in real estate,” he said.
Australia’s positive outcome was not, however, a surprise, Mr Quintal said.
“Our market is a world leader in this regard. Australia has been the test bed for new environmental laws, regulations and incentives and there are a number of industry organisations that have taken the lead on this issue,” he said.
Managing director for the investment and advisory group at Jones Lang LaSalle, John Talbot, said that this would contribute to providing an attractive environment for investors looking at Australian property.
“This new sustainability index further substantiates our view that the Australian market will outperform in key areas including sustainability.
“The requirement to meet responsible investing principles is greater than we have ever seen and will continue to grow as investors and shareholders become increasingly aware of the value of green,” said Mr Talbot.
While focusing on commercial property, transparency for residential transparency is set to become increasingly important in the wake of the carbon tax.
The index ranked countries based on environmental reporting requirements and the provision of data to investors with information on the sustainability performance of each in the market.