Recent moves by major funds to invest in housing are welcome, but we shouldn’t expect the sector to have a significant impact on the wider property market.
There is one type of investment that’s notably absent from a typical big super fund, even though it’s the biggest asset class in Australia: housing.
The opposition homeownership spokesman, Liberal Senator Andrew Bragg, warns against policies that encourage corporate ownership of homes – as opposed to ownership by individuals.So, what to make of all the fuss? The Association of Superannuation Funds of Australia says investment in “build-to-rent” housing in this country is less than 1 per cent of institutional investors’ real estate portfolios, compared with more than 20 per cent in the US.Last month, super giants AustralianSuper and HESTA joined forces to buy into a platform called Assemble that is aiming to facilitate large-scale investment from funds in cheaper housing – including build-to-rent, build-to-rent-to-buy, and build-to-buy.
HESTA’s chief investment officer Sonya Sawtell-Rickson says property assets sit somewhere between cash and higher-risk assets such as private equity. The Grattan Institute’s Brendan Coates says the sheer scale of super funds, compared with smaller investors, means they can act differently as landlords, including offering longer-term leases. Super funds invest for the very long term, so they’re likely to hold on to properties rather than sell.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NSW Health reports ‘recent increase’ in mpox infectionsNew South Wales Health has urged the community to be aware of mpox – previously known as monkeypox - symptoms following a “recent increase” in infections.
Read more »
What a recent breakup made me realise about loveI am discovering good love is hard to find and, sadly, often hard to keep.
Read more »
What a recent breakup made me realise about loveI am discovering good love is hard to find and, sadly, often hard to keep.
Read more »
What a recent breakup made me realise about loveI am discovering good love is hard to find and, sadly, often hard to keep.
Read more »
Survey data finds many recent migrants don't fully understand Australia's political systemBooming Chinese and South Asian migrant communities are keen to engage in Australian democracy but many do not fully understand how politics works in their adopted home country, new research has shown.
Read more »
How a battered Hamas may emerge stronger despite recent killingsAnalysts and regional observers see the latest blows Hamas has suffered as offering Israeli forces a short-term victory at the cost of long-term strategic success.
Read more »