The Property Council of Australia, the peak national body for commercial property owners, managers and developers, today supported the Federal Government’s decision to hold an inquiry into illegal practices in the building industry.
“There is no point the denying the need for an inquiry when most of the evidence of illegal activity comes from union leaders themselves,” Property Council chief executive Peter Verwer said.
“Building sites and building activities should not be quarantined from the rule of the law.”
Mr Verwer said that less than 2% of funds under management are now allocated to direct property, compared to 18% in the eighties.
“There is no doubt investors feel that development and construction risks are rising,” Mr Verwer said.
“Unless greater certainty is injected into the industry, property will continue to lose funds share to equities, bonds and offshore investments.”