Funds in focus FY27: Four signals emerging from Queensland's funds and property investment market
Funds in focus FY27: Four signals emerging from Queensland's funds and property investment market
Following a BDO-hosted boardroom lunch on 5 August 2026, one message was clear: the Federal Budget and broader regulatory changes are reshaping how property funds, fund managers and investors think about risk, reporting and returns. While capital remains available, the market remains cautious as execution is becoming more complex and operational demands are increasing.
Funds in focus FY27: Four themes emerging from the market
1. Investor reporting is entering a new era of complexity
One of the strongest themes raised was the increased burden of reporting. As tax, regulatory and governance expectations increase, fund managers face a more challenging task in explaining performance, compliance and investment outcomes to investors. At this stage, this issue cannot be immediately alleviated by a technology-based solution, despite it being essential in future.
Reporting will also be more complicated and, without further clarity from the government, there is a large degree of uncertainty.
What this means: Fund managers may need to invest further in reporting processes to meet rising investor expectations while maintaining efficiency.
2. Feasibility is becoming harder across new deals
There is growing pressure facing transaction feasibility. Higher costs, tighter project margins, valuation uncertainty and increased compliance requirements are making it more difficult for deals to stack up. This is due to a combination of federal and state-based taxes, but also high construction costs and a shortage of skilled labour.
For property-related investments in particular, the challenge is ensuring that projects can consistently deliver acceptable risk-adjusted returns once funding, tax, regulatory and construction factors are fully considered.
What this means: Greater rigour is being applied to acquisition and development assumptions, with many fund managers becoming increasingly selective about where capital is deployed. It also means the level of development may decrease, which has a flow on effect to the broader economy.
3. A growing valuation bottleneck is emerging
The capacity of valuers to meet future valuation requirements is a concern. With increasing requirements and pressure from regulators, particularly in the superannuation industry around asset valuations and the outcomes from the Budget, there may not be enough qualified valuers in the Australian market to support the workload ahead.
What this means: Delays, higher costs and capacity constraints could become a more significant issue over the next 12 to 24 months, particularly for large portfolios requiring frequent revaluations.
4. Yield is back in focus
While growth and capital appreciation remain important, there is a renewed emphasis on yield as investors reassess portfolio objectives in light of the changes to the taxation of capital gains.
With persistent market volatility and transaction uncertainty, reliable and consistent income streams are increasingly being viewed as a key differentiator. This trend is influencing both investor preferences and asset selection decisions across real estate, infrastructure and private capital markets.
What this means: Funds capable of demonstrating resilient and sustainable income generation may be better positioned to attract and retain investor capital. The lifecycle of funds will also be impacted if there is a shift to a ‘hold-for-longer’ mentality.
Looking ahead
The overarching message was not one of pessimism, but of increasing complexity. Regulatory change, heightened reporting expectations, transaction feasibility pressures and valuation constraints are reshaping the operating environment for funds.
For executives, fund managers and investors, success in FY27 and FY28 is likely to depend on the ability to navigate a more complex operating environment while still delivering attractive, sustainable returns. The key takeaway is that the market is placing a greater premium on certainty, transparency and income than it has in recent years, while also seeking to identify opportunistic deals.
How BDO can help
The discussion highlighted a common challenge: fund managers are being asked to navigate increasing regulatory complexity while continuing to deliver strong outcomes for investors. Reporting expectations are rising, transaction feasibility is under pressure, valuation requirements are intensifying and investors are placing greater scrutiny on sustainable income generation.
At BDO, we work with fund managers, property groups and investors to help them respond to these challenges through:
- Tax and regulatory advice on emerging Federal Budget and funds management developments
- Fund structuring and governance support to improve compliance and investor confidence
- Transaction and feasibility support to assess deal viability and manage risk
- Valuation, financial reporting and assurance services to help meet increasing stakeholder and regulatory expectations
- Strategic advice for managers seeking to attract capital in a market where transparency, certainty and yield matter more than ever.
As the funds landscape continues to evolve, organisations that can adapt quickly, communicate clearly with investors and make informed decisions will be best placed to capitalise on opportunities ahead.
If you'd like to discuss how these changes may affect your fund, property portfolio or investment strategy, please contact your local BDO adviser.
