In an interview live on stage at this year’s annual Property Leader’s Summit in Canberra, Poly Global Managing Director, Arthur Wang, suggested that Australia should turn its attention to global markets such as the United States and United Kingdom for inspiration in tackling issues such as housing affordability.
“We can take lessons learnt in these markets to give us a global vision as to what is a more productive and efficient way of dealing with current Australian issues within the real estate sector,” he told interviewer Leonie Wilkinson of La Salle Investments.
Themed around the concept of building a global future, Poly was highlighted as an industry leader in building their international footprint, with a globalisation strategy already spanning Australia, UK, and USA and New Zealand firmly in its sights.
“Poly Real Estate was and is the biggest sector of the Poly Group at roughly 75 per cent,” he said.
“Three and a half years ago we decided to start our globalisation strategy, and we ran some very comprehensive investment destination research covering approximately 175 countries.”
“We categorised these countries down to three tiers and Australia was well and truly a tier-1 country for us, and here we are.”
With Chinese investment a hot topic, particularly in Australia, Ms Wilkinson quoted a number of figures around the globe from 2016; with direct Chinese investment into the United States having tripled, Europe saw an increase of 77 per cent, while investment in Brazil increased four-fold. In contrast, Australia only saw an increase of 12 per cent.
After entering the Australian market with a bang just over two years ago, a suggestion that Poly Global may be pivoting away from Australia and looking at other international markets was refuted by Mr Wang – with a number of acquisitions in the pipeline for Poly Australia.
“I wouldn’t say we were pivoting away, but we are looking at other investment opportunities outside Australia,” said Mr Wang, who was in London last week.
“I am based in Sydney; however, my role is to question where we should allocate our capital across different markets. London has been allocated as an opportunistic market and the US is always a major investment destination in terms of an established market.”
Despite the global theme of the session, Mr Wang said it was important to point out that the real estate industry is in fact a highly localised business.
“Success depends on hiring local talent and setting up a local strategy. The first step for any globalisation strategy is to have a local one.”
“By experiencing other countries practices, we can then bring that experience and know how into consideration within our local business in Australia.”Download media release