As an independent property specialist with extensive experience in the Australian property market (both government and industry side), I have observed a recurring tension between government-initiated property policies and the reactions of industry stakeholders—landlords, developers, and other players.

Time and again, the introduction of new strategies or frameworks leads to a chorus of resistance from industry. Yet, history has shown that these policies, grounded in rigorous analysis and long-term objectives, rarely reverse course once implemented. Instead, they become benchmarks for progress, driving both government and industry toward shared goals.

Ultimately, strategic industry leaders embrace these policies and actively participate in their delivery. The quicker this alignment occurs, the faster the collective benefits are realised.

The permanence of property policies

Government policies in the property sector are rarely ephemeral. Whether introduced by the Commonwealth, State, or Local governments, these policies are generally built on extensive analysis of economic, environmental, and social trends. They are designed to address immediate challenges while preparing for future demands.

Take, for example, the Commonwealth Government’s leadership in recent decades:

• Density ratings for accomodation fit-outs
  By setting and reducing density benchmarks, the government has emphasised efficiency in workplace design. Initially met with pushback, these policies now reflect industry standards, fostering better use of space and cost-effective operations.
• Green Lease Schedules
  When the Green Lease Schedule was introduced to embed environmental compliance into tenancy agreements, many landlords resisted, citing costs and feasibility concerns. Today, it’s a cornerstone of sustainable property management, seamlessly integrated with industry practices like NABERS and Green Star certifications. 
• Optimising space utilisation
  The government’s focus on eliminating under-utilised space through rightsizing and downsizing strategies faced initial skepticism. Yet, these initiatives have since proven invaluable, aligning with global trends toward flexible workspaces and economic prudence.
• Coordinated procurement strategies
  Consolidating requirements and adopting joint approaches to market challenged traditional procurement practices. Over time, industry participants adapted, recognising the benefits of streamlined processes and reduced overheads.
• Indexation standardisation
  The move toward normalising indexation rates—while contentious at first (and likely still is)—has established consistency in lease agreements, benefiting both government tenants and landlords by ensuring predictability in budgeting and lease longevity.
• Net Zero and Sustainability
  The government’s current push for net-zero carbon emissions builds on decades of sustainable property initiatives. This aligns with the broader industry’s shift toward environmentally responsible development, ensuring long-term asset value and compliance. 

Industry’s role: From resistance to partnership

Despite the proven merits of these policies, industry reactions often follow a predictable path: initial resistance, prolonged debates, and eventual acceptance. This resistance can delay the realisation of the benefits these policies are designed to achieve.

Rather than opposing new government directives, good industry leaders view them as opportunities to collaborate and innovate. Governments rely on the expertise and capabilities of the private sector to solve complex problems. Whether through design, construction, or operational management, industry has a vital role in translating policy goals into tangible outcomes.

For example, the Commonwealth’s commitment to the Net Zero Plan and the Supplier Code of Conduct reflects not just social and environmental imperatives, but also a challenge for industry to pioneer new standards. Instead of focusing on perceived costs or barriers, this is a strong point for industry to seize the chance to shape the market’s future. 

Why collaboration matters

Government tenants offer the strongest covenant in the property sector.

Their long-term occupancy, financial reliability, and adherence to contractual obligations make them ideal partners for landlords and developers. Aligning with government policies strengthens these relationships and builds trust.

Moreover, government initiatives are not arbitrary. They reflect comprehensive planning aimed at achieving outcomes beneficial to both the public and private sectors. From improving workplace efficiency to addressing climate change, these policies ensure Australia remains competitive, sustainable, and resilient.

The way forward

The property industry’s mantra should be clear: Embrace change and lead the way.

Waiting for policies to become mandates or resisting their implementation only hampers progress. By engaging early and constructively, industry stakeholders position themselves as trusted partners, driving shared success.

Ultimately, government property policies represent a vision for a better future. As stewards of the built environment, we must recognise this vision and contribute to its realisation. The question is not if we should align, but how quickly we can do so to deliver meaningful outcomes together.