The Colliers Research team has prepared a summary of the 2023 Federal Budget announcement with an overview on how the Budget affects key components of the property sector, including Office, Industrial, Retail, Residential, Agribusiness, Hotels and Healthcare & Retirement Living.
- Office: The Budget’s emphasis on sustainability and introduction of increased energy ratings required for Managed Investment Trusts will boost the office sector's current ESG trend, driven by offshore investors and their shareholder expectations in addition to demand from occupiers who view ESG as part of their employee value proposition.
- Industrial: While the level of direct benefits to the Industrial sector were limited in comparison to prior years, the Australian Industrial sector will continue to benefit indirectly from the easing of the cost of living pressures on households, population growth and Australia’s GDP outlook.
- Retail: Government assistance with the cost-of-living pressures will provide much needed support to households and small businesses alike; and help to support spending in essential goods and services throughout the economy.
- Residential: The residential market remains a key focus area for both the Federal and State Governments, and the allocations announced as part of the Budget will begin to address the housing shortage and affordability issues by incentivising the BTR sector and expanding the Home Buyer Guarantee schemes.
- Agribusiness: Regional Australia stands to benefit from this year's budget, with the allocation of $1.0 billion towards biosecurity being the major highlight.
- Hotels: Investment in Australia’s natural and cultural tourism infrastructure, as well as support for major global sporting events, will help to boost international and domestic tourism further underpinning growth in the Hotel sector.
- Healthcare & Retirement Living: The importance of security and resilience within the healthcare system has also been made clear by the Australian Government’s allocations to support medical innovation, research, development, and local manufacturing of vaccine technology.