Australia is grappling with a housing backlog as a million immigrants arrive. Iwan Sunito, CEO of One Global Capital, shares insights into the situation.
Serving as an investment company specializing in property development and fully owned by Iwan Sunito, One Global Capital also manages the premium apartment hotel network SKYE Suites Green Square in Sydney.
While the issues differ, the challenges are akin: ensuring sufficient housing for a growing population. KPMG, an accounting form predicts a 4.9% national home price surge over the next nine months, followed by a 9.4% jump by June 2025.
The lack of available land, dwindling approval rates, and slower, costlier construction activities contribute to rising housing prices. Over recent years, Australian housing prices have soared, presenting difficulties for first-time buyers.
To address the housing crisis, the Australian government aims to create a million housing units in the next five years, involving private investment, including pension funds.
Iwan Sunito believes that the current market conditions in Sydney offer strategic opportunities for his company. He is enthusiastic about the real estate market in Australia, especially in Sydney, for 2023 and beyond.
In a remarkable move, One Global Capital will launch its first project worth IDR 4.5 trillion in Macquarie Park at the beginning of 2024. They obtained DA approval from the local council in just eight months, a process that typically takes 12-24 months.
Macquarie Park, known for its educational institutions, boasts 44,000 students at Macquarie University. It’s also a technology hub and a significant medical district in Sydney. The new Metro line set to be completed in 2024 will connect Macquarie Park to Barangaroo, reducing travel time to 18 minutes.
“Secondly, our application for the One Chatswood project, valued at IDR 7.5 trillion, is proceeding smoothly and has been accepted by the city council,” Iwan Sunito continues.
Chatswood, often referred to as the Beverly Hills of the Northern Beaches, is one of the largest central business districts in suburban Northern Sydney. It offers a wealth of cultural events, an amazing Asian culinary scene, and lush streets leading to verdant parks.
Iwan Sunito is particularly excited about building towards a greener future. They’ve incorporated this approach into all their past projects, creating extensive horizontal and vertical gardens within their residential buildings.
One Global Capital believes that the Macquarie and Chatswood areas are becoming magnets for property investors from the Asia-Pacific region, especially the Indonesian market.
