30-year property veteran: Australia has its head in the sand on housing

Livewire Markets
Livewire Markets
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Published 2024-07-18
There's no supply in residential housing nor the majority of segments of the commercial real estate market. Sky-high construction costs are now too prohibitive. Bandaid solutions, like rent control, only backfire. And inconsistent state, federal and local policies are not helping either.

That's according to this week's guest on The Rules of Investing, Andrew Parsons, a founder and the chief investment officer of global listed real estate manager Resolution Capital.

While these factors continue to perpetuate Australia's housing problem, they are actually positive for long-term investors in real estate. 

In this episode of The Rules of Investing, Parsons dives into Australia's property problem, outlines what he believes to be the solution, and shares why listed property is in for a strong three to five years ahead of us. 

Note: This episode of the Rules of Investing was recorded on Wednesday 17 July 2024. 

www.livewiremarkets.com/wires/30-year-property-vet…

Timecodes:
0:00 – Introduction
2:06 – A fascinating, under-appreciated part of the market
3:45 – What is a REIT?
5:30 – The key distinctions between REITs and physical property assets
8:45 – Which do you prefer: an investment property or listed property assets?
9:50 – Where REITs sit alongside equities and fixed income
10:55 – What you’re really paying for when you buy real estate
12:50 – Why property development is so difficult currently
13:40 – Australia’s troubling property supply shortfall
15:04 – “We don’t want urban sprawl”
16:30 – How do you solve Australia’s big property problem?
20:50 – The effect of interest rates on listed property, versus equities and bonds
23:40 – How Resolution Capital is currently positioned
33:50 – What is your best investment of all time?
38:08 – Resolution Capital’s five-year pick
All Comments (13)
  • @deborahcurtis1385
    "Spruikers and spivs on the roadside of life." - Paul Keating. Honestly? REITs are suddenly spruiking to retail investors anyone would think they're trying to offload. Basic research will tell you the commercial sector is on the nose and the only thing holding up residential is the massive influx of migrants and CGT breaks. Interest rates are nosebleed high there are pressures coming not just from the cost of materials but the inevitability that high interest rates are needed to attract funds to support the banks and debt repayments. The exposure of Australia to the residential market is frightening. Bricks and mortar shops are on the nose, office space is on the nose and we get this guy. Also surely LIvewire markets can afford a second camera and autocue so the presenter is not flagrantly reading off notes that are written as if she's having a conversation when in reality she is just reading off some pages of paper. It's just so wrong! Keep it real a correction is coming and many Sophisticated Investors have bailed out and created a hole this guy is trying to fill.
  • @markserainidis1058
    Property now has become less attractive, especially when Labor is in damage control..vic ..
  • @MrFastFarmer
    Why don't we have a discussion how this bloke and REIT is part of the housing problem? This type of investment should be illegal, especially since; and I quote "housing is simple supply and demand" 👎
  • @vmura
    Supply? cmon lets be honest.
  • @mranonymous6646
    If property keeps going up and wages don’t… we will have a big problem on our hands.
  • @thecountofmontecristo8280
    "I'm not blaming it all on immigration"...Please do. That is exactly what we should be blaming our current predicament on. Of course, we need immigration to fight demographic issues, but at the current rates it is simply unsustainable and problematic, a circumstance faced by many developed nations right now. Increasingly immigration will dictate politics going forward to the point where if you follow historical precedents it can reshape societies entirely. So, immigration deserves a huge amount of attention, blame and discussion right now. The worst situation is a refusal to talk about it or make it a partisan issue.
  • @coopsnz1
    High tax country ! Most northern european countries arent better for home ownership
  • @korkyket
    Invest in Bitcoin before retiring by diversifying across assets, allocating a small portion of your portfolio, staying updated on market trends, and considering long-term holding to balance risk and growth!!
  • @stephenkereopa7495
    Why do people start their conversations with ,to be honest ,freaks me out .😂