Australian Shareholders Association Webinar
Nicole Kidd and Simon Davies recently presented to Australian Shareholders Association members on the role of real estate private credit...
Australia’s residential development landscape will enter a period of adjustment (and pause) as taxation-related policy changes work their way through.
Builders with current in-flight developments have not focused on investor stock and my expectation is that projects such as land subdivisions and downsizer-focused owner occupier stock will be unaffected. By contrast, larger unit developments with any exposure to investor-grade stock may find sales rates slow due to the changes to capital gains tax (notwithstanding these new-builds would be eligible for negative gearing).
The real kick from the Federal Budget is to confidence. Developers are, by nature, entrepreneurs — putting capital at risk in projects that are already complex, time-consuming, and exposed to cost volatility. The property-focused changes to the taxation regime compounds this risk.
While high-quality, well-located projects with strong owner-occupier appeal will continue to move forward, the broader development pipeline is likely to slow. Many participants are expected to pause, reassess assumptions, and recalibrate strategies before committing to new projects.
In the near term, this hesitation may further constrain supply, setting the stage for longer-term imbalances once confidence returns.
Corval Avenue Limited ACN 089 265 270 AFSL 238546 (Corval Avenue) is the responsible entity of the Corval Avenue Select Credit Fund ARSN 090 994 326
This document does not contain and should not be taken as containing any financial product advice or financial product recommendations and has been prepared without considering your objectives, financial situation or needs. Before making any decision relating to a Corval Avenue fund, you should obtain and read a copy of the product disclosure statement and target market determination, or other relevant disclosure document for that fund, and consider the appropriateness of the fund to your objectives, financial situation and needs.
Past performance is not a reliable indicator of future performance.
Corval Avenue does not guarantee the accuracy, reliability, or completeness of the information in this document. To the fullest extent permitted by law, Corval Avenue, its group companies, and their directors, officers, employees, consultants, and agents disclaim all liability for any direct or indirect loss or damage arising from the use of this document. All investments carry risk, and the repayment of capital and performance in any of the funds named in this document are not guaranteed.
