Australia is one of several countries committing to ESG goals in the real estate sector since the built environment contributes to nearly 40% of carbon emissions worldwide. Cromwell Property Group is just one company that aims to reduce 4.4 million kilograms of carbon dioxide equivalent by 2028. To reach this and wider national sustainability goals, innovative asset management models in the real estate sector will be needed.

Why innovation is needed in real estate asset management

From inflation to volatile market fluctuations, solid models are needed to ensure that real estate assets are protected and investments can survive a high-risk environment. Traditional models may have some strengths, but innovation is required to keep up with digital advancements and data security requirements. New and emerging models must also account for regulation shifts. By integrating AI and sustainability into real estate asset management models, Australian investors and asset managers can ensure refined valuations, enhanced decision-making, and long-term portfolio success.

Australia’s asset management models

The below asset management models have been developed by the Asset Management Council in Australia to allow individuals to reap the maximum benefits of asset management, including in the real estate sector. The Council has identified that good asset management is founded on the principles of Output Focus, Capabilities, Level Assurance, and Learning Organisation. Here is a quick overview of the asset management models in Australia:

1. Asset Management Concept Model

This is a conceptual model that provides the foundation of successful asset management and can be a good starting point for real estate investors and asset managers.

2. Asset Management System Model

Taking a more systematic approach, this model lays out the key components of an asset management system and how they relate with each other for best outcomes.

3. Organisational System Model

With this model, you will have a clear picture of the organisation’s management system as a whole and how its typical components integrate.

4. Capability Delivery Model

This model shows how capable the different processes are in handling successful real estate asset management.

5. Maturity Model

A more dynamic model, this approach depicts how the human element, including performance, leadership, and culture, can all integrate with asset management for best results.

Need advice on the best asset management model for your real estate investment in Australia? Book a consultation with SWIFT Group for expert insights.