While much focus lately has been on residential land / home values along with foreign ownership, almost all commentators have forgotten to mention a large amount of benefits in the commercial sector, with foreign partnerships driving forward all major commercial construction companies.
These types of investments are in mixed use commercial premises, mainly complexes which contain a mixture of ground-level commercial shops and restaurants, lower level office space and higher level residential apartment.
This type of 3 tier system is fairly new to Australia, however, is extremely common throughout Asia, and this is where the latest wave of investment in Australian commercial building companies has been flooding in.
This type of investment is a huge benefit to Australia, and we should not consider this type of investment on par with foreign investment in single dwellings. These companies from Asia are extremely experienced and efficient in running their operations, with around 40 years experience building these types of complexes throughout Asia.
The way we benefit from this is they will contribute a share of the development investment required to construct a multi use complex in partnership with local commercial builders, which provides stability for these businesses, and provides employment for thousands of labourers, foremen and contractors, usually labour is entirely handled by local hires, not foreign workers.
While the residential individual dwelling prices may be affected currently, there is stability in the process of mixed use developments ensuring the market remains stable for companies taking part in these types of developments.
Some recent companies sighted partnering with local commercial construction companies are Malaysian companies named EcoWorld and Setia, two of the biggest construction companies in Malaysia, with 3 projects already completed and further developments in progress currently. These are mostly inner metro developments, and are easy to spot from the tower crane signage lighting up the skyline above each development.
We need to keep an open mind when opportunities like these come up, developing multi use buildings increase the expansion of local businesses along with providing reliable inner city living which will begin to fill the lack of availability in the single dwelling sector.
Without such investment of these Asian giants, it’s likely the Australian commercial construction sector would have been in serious trouble, along with the thousands of jobs it supports Australia wide.