Australian construction and property industries tackle modern slavery
On the international day of remembrance of victims of slavery, new research reveals the lengths Australian property and construction businesses are going to to end the scourge
3 min
Concerns about modern slavery usually focus on the garment and technology sectors but new research in Australia has focused on ways of identifying and dealing with the scourge in construction supply chains.
The Property Sector’s Modern Slavery Act Response Research Project is a joint project between Bond University, Better Sydney and Informed 365, an Australian tech company focused on monitoring compliance and supply chain transparency under the Australian Modern Slavery Act 2018.
The Act mandates annual reporting for companies with revenues of more than $100 million. The Global Slavery Index 2022 estimates that modern slavery accounts for nearly 50 million worldwide. Since the Act was introduced, company boards have been held responsible for public statements made by their companies on their abilities to assess and manage the risk of modern slavery in supply chains. The construction industry is considered to be particularly vulnerable thanks to the lack of visibility over long and complex supply chains, as well as the high demand for a low-skill labour force.
The research project, released to coincide with the International Day of Remembrance for the Victims of Slavery, was tasked with examining the Australian industry’s ability to cope with assessing and managing reports of slavery in the supply chain. It follows on from the launch of the Property Council Supplier Platform in 2019 by the Property Council of Australia and Informed 365 to provide a digital platform for the local property and construction sector to collect, compare and understand supply chain data on human rights and modern slavery.
Supply chain slavery issues are notoriously complex to identify but Property Council national policy director Francesca Muskovic said modern slavery in construction impacts millions of people in Australia and abroad and needed to be addressed at a national level.
“Our industry provides jobs for more than 1.4 million Australians – more than mining and manufacturing combined. This extensive influence places us in a unique position to address the social impacts of our activities and improve people’s lives,” Ms Muskovic said.
She said despite the challenges, the Australian construction and property industry sought to improve human rights outcomes both here and overseas.
“Our supply chains are geographically diverse, multi-tiered and complex. Understanding the human rights and modern slavery risks within them is essential in helping the industry make their supply chains more ethical and sustainable,” Ms Muskovic said.
“The property sector has forged a world-leading position on environmental sustainability, and it is pleasing to see leaders continue to step up their efforts on social sustainability.”
The research revealed that while 88 percent of suppliers to Australia’s leading construction and property firms understand what modern slavery is and 44 percent reported they had processes in place if a human rights incident or modern slavery was identified, smaller firms were less prepared.
“Many smaller firms were not aware of supply chain issues due to a lack of engagement, resources or audits, so there were mixed results in terms of supply chain mapping and risk assessment,” said Robin Mellon, CEO of Better Sydney, Board member for the UN Global Compact Network Australia, and Project Manager for the Property Council’s Human Rights and Modern Slavery Working Group.
“The report found 56 percent of suppliers who assessed their supply chains beyond their own immediate suppliers found some human rights issues or concerns, showing how important it is to investigate all levels of supply chains.”
Designed to better understand the challenges, strengths and opportunities for the property sector to improve its response to slavery, the research is part of Australia’s ongoing contribution to eradicating it worldwide.
Mr Mellon said access to resource materials are key to helping property and construction businesses stay informed.
“There are now excellent learning materials available through the Property Council, the UN Global Compact Network Australia, and anti-slavery organisations to help engage, educate and support suppliers towards continuous improvement,” he said.
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Australia’s housing affordability crisis is being fuelled by chronic undersupply, planning delays and rising development costs, as politicians continue to focus on the wrong solutions.
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Australia’s housing crisis will not be solved by first-home buyer incentives or tax changes alone, with leading property figures warning governments must tackle supply constraints if affordability is to improve.
Speaking at the Kanebridge Quarterly Property Leadership Summit in Sydney last week, expert project marketing specialist Sam Elbanna, property investor and fund manager Paul Miron and property consultant Karla McNeice said that a lack of housing supply remained the central issue facing the market.
Elbanna, Director of CPM Realty with more than 30 years’ experience in project sales, argued that successive governments had focused too heavily on stimulating demand rather than addressing the barriers preventing new housing from being delivered.
“The misconception is that politicians think the way to solve the housing crisis is to drive demand,” he said.
“The reality is that’s not the way. This is a supply-side problem, and it needs to be solved on the supply side.”
Drawing on his experience in project sales, Elbanna said policies designed to help first-home buyers often had unintended consequences, pointing to previous grants that ultimately flowed through to higher property prices.
Instead, he said developers were facing increasing red tape, approval delays and rising costs, which were discouraging new housing supply.
“In the absence of stock, demand exceeds supply,” he said.
Miron, a Co-Founder and Fund Manager of Msquared Capital, said the housing debate had become overly focused on tax policy while overlooking broader structural issues.
He argued that affordability challenges stemmed from a combination of factors, including planning constraints, supply shortages, migration levels and interest rates.
“No-one can be 100 per cent certain on the real reason for property prices is going up,” he said.
“The reason why property prices are higher is a combination of interest rates, lack of supply, migration, vacancy rates and maybe taxes play a role.”
Miron was critical of recent federal housing policy changes, warning they could reduce the number of new homes being built and further constrain supply that was even highlighted in the budget.
He also highlighted the importance of the property sector to the broader economy, noting that residential real estate and related industries employed more than one million Australians.
McNeice, who advises developers on sales strategy and market intelligence, said understanding buyers had become increasingly important as affordability pressures intensified.
While affordability remained a major consideration, she said today’s buyers were focused on value rather than simply price.
“People are looking for value for money,” she said.
She said buyers were increasingly evaluating factors such as transport connections, walkability, nearby amenities and flexible living spaces that could accommodate changing family needs.
“What infrastructure is going on? Can I walk to the shops? Can I meet people at the local cafe?” she said.
The panel also discussed the mounting pressures facing developers, with Elbanna arguing that many projects become financially unviable from the moment a site is purchased.
“The viability of a development happens at the moment the site is bought,” he said.
He said rising construction costs, higher interest rates and overly optimistic feasibility assumptions had left some developers exposed as market conditions changed.
While acknowledging the growing number of smaller and first-time developers entering the market, Elbanna said property development required expertise across finance, construction, marketing and legal disciplines.
“It is actually a business that requires a level of expertise,” he said.
Looking ahead, the panel agreed opportunities remained in the market despite current challenges.
Miron said property should continue to be viewed as a long-term investment and cautioned against trying to time short-term market movements.
McNeice said success would increasingly depend on identifying projects that genuinely met changing buyer expectations.
Elbanna said affordable housing remained achievable, but developers needed to deliver more than just homes.
“We can provide affordable housing in this country,” he said.
“But we’ve got to wrap that affordable housing with the things that people want.”
As Australia’s housing affordability debate intensifies, the panellists agreed on one point: without a meaningful increase in housing supply, demand-side measures alone are unlikely to solve the nation’s property challenges.
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