Issues impacting businesses in Real Estate & Construction
Managing changing regulation & the complexity of compliance
The real estate & construction sector is subject to extensive legislation and regulation at the federal level (including the ATO FIRB and ASIC reporting requirements), along with multiple layers of state and territory legislation and regulation. Organisations working on projects around Australia need to be across regulations in each State they operate in, as failure to meet obligations could mean suspension of your licence to operate in that state.
It’s a push and pull scenario when the states use regulation and tax policy to gain a competitive edge on other jurisdictions. Whether it’s tax, audit or risk, we can cut through the compliance and complexity.
Housing affordability a major national issue
Ranking as one of the least affordable housing nations in the world, housing affordability has become a major national issue amid rising cost of living prices. Australian house values have risen at an incredibly rapid rate, resulting in deepening housing inequality.
To address this, developers and not-for-profits are building more social and affordable housing, introducing 'help to buy' schemes, and investing in build-to-rent projects. The Federal Government is also taking action with initiatives like the Housing Australia Future Fund and the Social Housing Accelerator. Despite these efforts, the shortage of housing and rising rents continue to put pressure on renters, highlighting the need for further action to improve affordability.
Component shortages and price rises persist
The real estate & construction sector is one link in a long supply chain, and with workforces around the world still struggling to keep up with demand, those supply chains have become sluggish. Coupled with component shortages and high freight costs – it’s no surprise that prices have risen across the sector. These price increases have had a heavy impact on organisations and consumers alike, with construction generally operating on thin margins.
Conditions have heavily impacted construction companies’ bottom lines, often resulting in loss of profits. Those on slender margins who aren’t assessing and mitigating risks early, will see struggle with solvency. Others with a stronger balance sheet are looking at opportunities to diversify revenues, vertically integrate to manage the risk to their business.
Digitisation is here to stay
From online property portals and virtual property tours improving client experiences, to finding efficiencies in processes and supporting our human capital – systems have enabled efficiencies in real estate and construction. Through these digital advancements, we’ve seen more precision, optimised time and resource allocation, reduced paperwork, operational efficiencies and smoother property management.
However, this also means disruption for organisations unable to keep up with the fast pace of change, as they can quickly be left behind. The pandemic has been a clear example of that, with an acceleration of change beyond what we could have expected and digital transformation occurring across all businesses – the winners being those agile in adopting new technology. To help you embrace technology, collaboration and innovation, new grants and incentives are continuously released. Reach out to understand what support you’re eligible for.
Cyber security issues and fraud risks rising
With recent data breaches bringing into focus the importance of cyber security and operational resilience, the issue of data protection has never been more prevalent. This should be front of mind not only from an IP and release of data perspective, with the vast amount of personal information real estate companies in particular hold, but also due to these incidents getting vast attention, scrutiny, and often resulting in loss of public and shareholder confidence. Having a strong strategy in place to prevent, minimise and rectify customer detriment is more crucial than ever.
Attracting and retaining talent
The integration of technology is transforming the sector, creating demand for a more tech-savvy and adaptable workforce. With a shortage of skilled tradespeople, companies are finding that traditional financial incentives alone aren’t enough. Non-cash benefits and employee share schemes can provide a competitive edge in attracting and retaining talent while also protecting intellectual property.
Government efforts, including increased migration caps and fee-free TAFE courses, are also helping address these shortages. Meanwhile, businesses are using technology to overcome workforce challenges, employing digital tools to enhance operational efficiency and reduce human error. Investing in continuous learning and recruiting digital talent will be essential for navigating this evolving landscape and maintaining competitiveness.
Preparing for the Brisbane 2032 Olympics & Paralympics
Brisbane has been announced as host of the 2032 Summer Olympic and Paralympic Games. The Games can be a catalyst for development of host cities, and the opportunity for the South East Queensland region is immense. Nurturing the development opportunities, both in a physical sense as well as for building infrastructure, careers, culture and lifestyle, is crucial in ensuring the Olympic legacy is one that enriches the host city, region and nation.
