Unlisted property remains strong

Unlisted-property/listed-property/property/real-estate/Zenith-Investment-partners/MSCI/property-council-of-australia/australian-equities/equities/Australian-real-estate-investment-trusts/AREITs/dugald-higgins/mark-lumby/

4 December 2019
| By Oksana Patron |
image
image
expand image

The unlisted property sector has delivered a standout performance over the last five years with annualised return of 21%, according to data released by Zenith Investment Partners, MSCI, the Property Funds Association and the Property Council of Australia.

From the last 12 months as of September, 2019, the sector delivered 12.3% returns while, at the same time, Australian equity markets delivered an annual return of 13%. Following this, Australian real estate investment trusts (A-REITs) returned 15.7%, global equites stood at -1.9% and cash delivered 1.9% over the same period.

According to Dugald Higgins, head of property and listed strategies at Zenith Investment Partners, although capital growth remained broadly positive, momentum across sectors continued to slow with mixed results.

The additional headwinds were nimble international retailers, competition from online retailers, high rental costs, and slowing economic data.

“Office markets are benefitting from strong rental growth in key markets while growth in e-commerce continues to drive up demand for modern logistics facilities,” he said.

Additionally, the low cash environment continues to underpin momentum for capital seeking assets with attractive yields which is driving strong returns for investors in unlisted property funds, as according to Mark Lumby, head of commercial property at Australian Unity.

“As commercial properties generally have medium-to-long term leases which are indexed every year to CPI or have fixed increases in place, the sustainability of income from property becomes more attractive to investors,” he said.

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?...

1 month 4 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 ago

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

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 5 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 4 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 3 days ago

TOP PERFORMING FUNDS