Politics heighten investor fear of property market

Political intervention in infrastructure projects in Australia is lowering the nation’s investment reputation and stirring up commentary more often associated with emerging economies, according to Infrastructure Partnerships Australia (IPA).

In key findings jointly released annual IPA/Perpetual Infrastructure Investment Report, statistics collected found 70 per cent of investors remained ‘highly likely’ to invest in Australia, but 62 per cent had concerns over political risks.

In addition, close to three quarters of surveyed investors (72 per cent) found the energy market uncertain, whilst 66 per cent were not optimistic about national government infrastructure policy.

 “Two thirds of investors are spooked by the Federal Government’s unpredictable policies of energy and other market interventions planned or under consideration,” said IPA chief executive, Brendan Lyon.

VIEW ALL

View all

“Political interventions on projects and unpredictable rule changes see Australia now receiving the type of investor commentary that’s more usually associated with emerging economies.”

Commenting on the findings, Perpetual Corporate Trust general manager managed funds services, Andrew Cannane said investors should weight their options before throwing in the towel, but remain aware of the fickle nature of industry reputation.

“Like any industry, [a] hard-won reputation will erode if we don’t continue to improve what we do,” he said.

“With less investment opportunities emerging and tighter pricing, Australia cannot afford to rest on its laurels as an infrastructure investment destination.”