Australia’s real estate market has emerged as a pivotal frontier for global investment, and Goldman Sachs’ recent strategic moves underscore its growing significance. The firm’s appointment of Samuel Green as managing director for its Sydney-based real estate investing team marks a calculated shift in alternative asset allocation, capitalizing on Australia’s evolving market dynamics and regional opportunities. This article explores how Green’s return to Goldman Sachs aligns with the firm’s broader strategy to deepen its footprint in real estate and credit investing, while navigating the complexities of a market defined by high demand, constrained supply, and shifting investor priorities.

A Market in Transformation: The Australian Real Estate Landscape

Australia’s real estate sector has undergone a remarkable transformation in 2025. The national average house price surpassed $1 million for the first time, reaching $1,002,500, with the total residential property market valuing $11.4 trillion. Urban centers like Sydney, Melbourne, and Brisbane remain dominant, driven by population growth, infrastructure projects (e.g., the Western Sydney Airport and Melbourne’s Suburban Rail Loop), and a surge in demand for high-density living. Meanwhile, regional markets such as Brisbane and Perth are gaining traction, fueled by affordability and migration shifts.

However, the market is not without challenges. Construction delays, labor shortages, and planning bottlenecks have left over 37,000 approved homes unstarted as of December 2023, exacerbating the supply-demand imbalance. Affordability remains a critical issue, with housing prices outpacing income growth and over one million low-income households experiencing financial stress.

Samuel Green’s Return: A Strategic Pivot to Alternative Assets

Goldman Sachs’ appointment of Samuel Green as managing director for its Australian real estate team is a deliberate step to bolster its alternatives business. Green’s career trajectory—spanning roles at Apollo Global Management, Macquarie Principal Finance, and Goldman’s investment banking division—positions him to navigate the complexities of real estate and credit investing. His expertise in private equity, hybrid, and credit strategies across real assets aligns with the firm’s focus on alternative allocations, particularly in a market where demand for non-traditional assets is surging.

Green’s role involves expanding Goldman’s equity and credit real estate platform in Australia, with a mandate to strengthen client engagement and capitalize on regional opportunities. His return follows the departure of Juan Manas, the former head of real estate equity and debt for the firm in Australia, and signals a strategic refocusing on core and core-plus real estate strategies. These strategies, which prioritize stable cash flows and risk-adjusted returns, are well-suited to Australia’s current market environment, where lower interest rates are expected to drive transaction activity and asset revaluation.

Alternative Asset Strategies: Equity, Credit, and Regional Opportunities

Goldman Sachs’ approach under Green is centered on three pillars: equity investments, credit opportunities, and regional market diversification.

Equity Investments: The firm is targeting high-growth sectors such as industrial real estate, where demand for logistics and warehousing remains robust due to e-commerce expansion. Industrial assets, which outperformed other commercial sectors in 2024, are expected to continue their upward trajectory as supply constraints persist. Goldman is also exploring multifamily housing, particularly in outer suburbs and regional centers, where affordability and infrastructure projects are driving demand.

Credit Opportunities: With the Australian real estate credit market attracting $539 billion in foreign investment by 2023, Goldman is leveraging its expertise in hybrid and credit strategies to capitalize on undervalued assets. This includes opportunities in distressed debt, mezzanine financing, and structured credit products, particularly in sectors like office and retail, where bifurcation is creating pockets of value.

Regional Diversification: While urban centers dominate price growth, regional markets are emerging as key opportunities. Queensland and Western Australia, for instance, are benefiting from resource-driven economies and government incentives for regional migration. Goldman’s strategy under Green emphasizes identifying assets in these areas that align with long-term demographic and infrastructure trends.

The Broader Implications: A Shift in Global Investment Priorities

Goldman Sachs’ expansion in Australia reflects a broader shift in global capital toward alternative assets. The firm’s alternatives business, which manages $514 billion globally, is increasingly allocating to real estate and credit markets in Asia-Pacific, where regulatory clarity, infrastructure spending, and demographic trends create a favorable environment. In Australia, this strategy is amplified by the country’s stable political climate, robust legal framework, and growing appetite for private credit opportunities.

The firm’s 2025 Asset Management Outlook highlights that lower interest rates and improved supply-demand dynamics will drive real estate transaction activity, particularly in sectors like industrial and multifamily housing. For Goldman, Green’s leadership is critical to navigating these dynamics while mitigating risks such as construction delays and market saturation.

Investment Insights: Navigating Opportunities in 2025

For investors, the Australian real estate market presents a mix of caution and opportunity. Here are three actionable insights:

Prioritize Industrial and Multifamily Sectors: With peak supply deliveries softening and demand remaining strong, these sectors offer attractive entry points. Investors should focus on assets with operational flexibility and proximity to infrastructure projects.

Leverage Credit Opportunities: Distressed debt and mezzanine financing in office and retail sectors could yield higher returns as markets stabilize. However, due diligence is critical to avoid overexposure to low-quality assets.

Diversify into Regional Markets: Cities like Brisbane, Perth, and Darwin are gaining traction due to affordability and migration incentives. These areas offer long-term growth potential, particularly for investors with a 5–10 year horizon.

Conclusion: A Strategic Bet on Australia’s Future

Goldman Sachs’ strategic real estate expansion in Australia, led by Samuel Green, is a testament to the country’s evolving market dynamics and the growing appeal of alternative assets. As the firm deepens its equity and credit investing platform, it is positioning itself to capitalize on a market where demand outstrips supply, infrastructure spending accelerates, and regional opportunities diversify. For investors, the key lies in aligning with these trends while balancing risk and reward—a challenge that Goldman’s seasoned leadership is well-equipped to navigate.

In the coming years, Australia’s real estate market will likely remain a focal point for global capital, and Goldman Sachs’ strategic pivot under Green ensures it is primed to lead the charge.