Proposed policy settings could help create as many as 100,000 new homes for Australians, according to a blueprint released by IFM Investors.
Investing in Australia: Accelerating Industry Super Investment and Growing Australia’s Housing Supply details the steps governments can take to boost investment that delivers appropriate risk-adjusted returns to workers’ retirement savings and help deliver housing at scale.
The key recommendation to at least double the Housing Australia Future Fund – from $10 billion to $20 billion – and aligning state and Commonwealth efforts to drive investment – has the potential to significantly increase the supply of social and affordable housing.
Australia’s superannuation system is one of the largest and fastest growing in the world, with more than $4 trillion of funds under management.
The Housing Blueprint provides a clear, actionable path forward to accelerate industry super investment in housing and help boost Australia’s housing supply. If 0.5% of the $3 trillion expected to be managed by industry super funds by 2030 were invested, it would see over $15 billion in investment and the creation of around 100,000 additional homes.
IFM also recently announced that leading Australian property funds manager ISPT has joined our business following the completion of a transaction to acquire ISPT and bring it on to the IFM global private market investment platform.
Bringing ISPT into the IFM Investors platform presents an opportunity to combine the capabilities, talent and experience of the IFM and ISPT teams, helping create further opportunities to add value for clients and accelerate IFM and ISPT’s combined growth strategies, including in housing.
Other Recommendations of the Housing Blueprint include:
- Aligning State and Commonwealth Investment Measures: Better coordination between state and Commonwealth governments can help ensure investment and new delivery of new housing supply happens faster, including co-contribution to housing investments.
- Identifying Long-Term Land Pipelines: To ensure a steady supply of well-located housing, the Blueprint recommends identifying long-term pipelines of land, including surplus Commonwealth land, that can be earmarked for housing developments.
- Providing Greater Certainty in the Planning System: The creation of new planning pathways that guarantee planning decisions within 3-6 months help provide greater certainty and reducing delays for housing projects.
- Supporting Community Housing Providers (CHPs): CHPs are key partners in the delivery of social and affordable housing, so it’s vital that there is a nationally consistent approach to their regulation and capacity building.
- Supporting the Uptake of Modular Housing: To help address supply chain challenges that are slowing the delivering of new housing.
Quotes attributable IFM Investors Head of Global External Relations, David Whiteley:
“The opportunity exists to establish a new asset class for super funds that delivers strong risk-adjusted returns to members and addresses the current supply-side and therefore affordability challenges in the housing market.”
“Collaboration between government and business is typically necessary to address systemic challenges facing economies and communities. Housing affordability is no exception and the right policy settings can deliver strong returns to members and address the housing shortage.”
Quotes attributable to Community Housing Industry Association CEO, Wendy Hayhurst:
“Industry Super Funds have long invested in nation-building infrastructure. Housing should be next and the solutions are on the table.”
“There’s a genuine opportunity to harness Australia's superannuation savings to help solve our housing crisis. The alternative - a future of deepening housing insecurity and social instability - is simply unthinkable.”
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About IFM Investors
IFM Investors was established more than 25 years ago with the purpose to invest, protect and grow the long-term retirement savings of working people. Owned by a group of Australian pension funds, the organisation has approximately A$221.7 billion under management as at 30 September 2024. Because IFM is owned by industry pension funds, we prioritise the interests of 717 like-minded investors worldwide by focusing on assets that combine excellent long-term risk/reward characteristics with broad economic and social benefits to the community. Operating globally from offices in Melbourne, Sydney, London, Berlin, Zurich, Amsterdam, Milan, New York, Houston, Hong Kong, Seoul and Tokyo, IFM manages investments across infrastructure equity, debt, listed equities and private equity assets. For more information, visit www.ifminvestors.com.
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