Confidence is returning to the property funds management industry but finance remains tight, according to an industry survey.
Australian Direct Property Investment Association (ADPIA) president Robert Olde said many in the investment industry believed the time was right to re-enter the property market, but lenders had yet to agree.
“According to a recent survey of members, more than 60 per cent believe that securing funding would be the biggest issue over the next 12 months,” Olde said.
“This sentiment remains unchanged from last year, when an identical number of members stated this was the biggest concern.”
However, he said there were positive signs emerging within the industry. For example, 58 per cent of property fund managers surveyed survived the financial crisis without selling up or merging with another company. A year earlier, 75 per cent of fund managers surveyed had said they were considering doing so.
The survey also found around 70 per cent of members believed the abolition or equalisation of stamp duty around Australia was a “very important” issue for the industry.
A pending review of net tangible asset requirements, whereby fund managers are to be given stricter capital adequacy requirements, was also rated as either “very important” or “important” by more than half of members.
Olde also said ADPIA planned to change its name.
“ADPIA represents the interests of not just direct property managers, but also the interests of anyone whose livelihood depends on a healthy property funds management industry,” he said.
“It is for this reason that we have proposed ADPIA’s name be changed to the Property Funds Association of Australia Inc,” he said, adding members would vote on the name change today.
