Property

The real estate sector has long been a cornerstone of wealth generation in Australia, offering stable, income-generating assets that hold intrinsic value due to the finite nature of land. At The Inside Network Alternatives Symposium, Julian Biggins, co-CEO of MA Financial, outlined why advisers should be paying close attention to the opportunities emerging in the real estate market.

Born out of a government program, the Specialist Disability Income sector has expanded into a robust private market investment opportunity for those with the expertise to navigate its unique characteristics.

High returns help, but what’s more important is trust, accountability, and making sure that the remuneration structures aren’t “really cheeky”.

While it’s broadly considered an alternative asset class, there are still traditional and non-traditional subsectors to real estate. Both have their idiosyncratic features, and both are becoming increasingly attractive to investors across the entire spectrum.

It will be brief, geographically limited and may not come at all, but if SQM Research’s prognostications are again correct there may be reason for aspiring property buyers to smile early next year.

Real estate income will face challenges in the new value cycle, Invesco says, but investors will have the chance to build growth if they lean into secular drivers and key differentiators.

While Australian property is a surging market, the funds that provide broader access to it have lacked ingenuity for some time. That is changing, however, with a new class of providers emerging who look set to change the game.

Global REITS give investors a structured access point to real estate across regions, potentially unlocking a valuable investment sleeve. But there are risks to contend with, according to Will Arnost from Atchison Consultants.

As Australian healthcare expenditure continues to rise and investors move deeper into the sector, healthcare property is well placed to continue its outperformance of other commercial property sub-sectors.

It’s an unlikely source of good news: property vacancy rates are up and rental asking rates have softened slightly. But SQM’s Louis Christopher warns against interpreting the change as a sign that the rental crisis has turned.

All verticals in commercial real estate have become problematic in the last five years, but there remain pockets of opportunity. Figuring out which of those pockets present the best path forward is the real challenge.

From residential and commercial backed mortgage securities, to whole loans and government issued bonds, there is a range of investment products that are backed by housing mortgages.