LPT medium-term outlook good: Oliver

property/superannuation-funds/ASFA/association-of-superannuation-funds/

11 February 2009
| By Corrina Jack |

Corinas daily: cj propertyOne of Australia’s leading economists has pointed to a return to value for listed property trusts (LPTs).

Speaking at an Association of Superannuation Funds of Australia (ASFA) event yesterday, AMP chief economist Dr Shane Oliver estimated the return potential for LPTs over the next five to 10 years is around 13-14 per cent, compared to an average long-term return for the sector of around 10 per cent.

Oliver said the recent slump in shares and listed property had boosted the medium-term return potential of the asset class. He said because prices had fallen so far, this had led to an increase in their return potential.

“They’re certainly worth looking at as an investment,” Oliver said.

However, he said the short-term outlook (one to two years) is “anyone’s guess” and the market could easily see more downside over the next month or two.

Oliver said of the property asset classes, the least attractive is now residential housing, as a result of rising unemployment.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND