Institutional Investors

Stability, growth potential, and long-term value

Invest confidently with expert local market insight.

Razor sharp insight

With a sharp focus on market dynamics and demographic trends, we provide the insight you need to invest with confidence

Stable and Transparent Market

Well-regulated market with strong legal protections.
  • Regulatory Environment: Australia’s real estate market is well-regulated with strong governance, offering a transparent investment landscape.
  • Legal Protections: The legal framework ensures clear property rights and transparent transaction processes, which helps mitigate risks associated with property ownership and transactions.

Strong Economic Fundamentals

Decades of growth supporting investment confidence.
  • Consistent Economic Growth: Australia has experienced decades of steady economic growth, driven by a diverse economy, low inflation, and relatively low unemployment. This creates a solid foundation for long-term property investments.

Attractive Rental Yields

High, stable yields across property sectors.
  • Institutional investors often look for properties with reliable and relatively high rental yields. In some Australian cities, especially in commercial real estate, yields can be more attractive compared to other global markets. 
  • For example, completed NDIS or Specialist Disability Accommodation properties can attract gross yields as high as 18%.

Capital Appreciation Potential

Consistent value growth in key regions.
  • Over time, Australian property markets, particularly in major cities like Sydney, Melbourne, and Brisbane, Hobart, Adelaide and Perth, as well as many regional centre,  have shown consistent capital growth. This potential for long-term capital appreciation is appealing for institutional investors looking to grow their portfolio value.

Diversification Benefits

Spread risk across sectors and geographies.
  • Geographical Diversification: For global institutional investors, Australian real estate provides diversification outside their home markets. Its relatively low correlation with other global markets (such as the U.S. or European markets) can help reduce overall portfolio risk.
  • Sectoral Diversification: The Australian real estate market includes residential, commercial (office, retail, and industrial), and specialized sectors (such as healthcare or student accommodation). This diversification helps institutional investors balance risk and opportunity.

Currency Advantage

Favourable exchange rates boost global returns.
  • For international institutional investors, the Australian dollar (AUD) can sometimes offer attractive exchange rates, particularly when the dollar is weaker, enhancing the returns on investment when converted back to their home currency. At present, for American, Asian and European investors, the AUD is at a structural low and presents a lucrative opportunity.

Government Incentives and Policies

Favourable exchange rates boost global returns.Tax benefits and infrastructure-backed opportunities.
  • Australia offers various incentives for property investment, such as depreciation benefits for commercial properties and attractive taxation structures like capital gains tax exemptions for long-term investors. Additionally, government policies support infrastructure development, enhancing the value of real estate in growing regions.

Population Growth and UrbaniSation

Growing demand in expanding urban centres.

  • Australia’s population is growing, driven by both natural increase and immigration, which creates long-term demand for residential and commercial properties. The trend of urbanization, particularly in major cities, supports sustained demand for real estate in key areas.

Institutional Investor-Friendly Structures

Flexible investment vehicles tailored for institutions.
  • In Australia, institutional investors have access to specialised vehicles like Real Estate Investment Trusts (REITs), which allow for pooled investments in property assets. REITs offer liquidity and flexibility, along with the ability to diversify across different property types and locations, all while benefiting from expert management.

Resilience in Times of Crisis

Proven stability through economic disruptions.
  • Australia’s real estate market has shown resilience in global financial crises, such as during the Global Financial Crisis (GFC) and the COVID-19 pandemic. This stability, combined with a strong recovery trajectory, makes it an attractive destination for institutional investors seeking safe-haven assets.

Infrastructure Development

Strategic projects drive value and returns.
  • Australia has invested heavily in infrastructure, such as public transportation, roads, and commercial developments. These investments increase the appeal of properties in areas undergoing infrastructure expansion, which institutional investors can capitalize on for both capital appreciation and rental income. 
  • An example of this is the current growth of co-living rentals near universities and natural resource extraction centres, offering up to 5 year guaranteed 10% gross rental yields.