Property

Rate hikes are causing anxiety for Australian mortgage holders, with new research showing seven out of 10 worry about missing repayments. As large numbers of fixed-rate mortgages expire, analysts say distressed property selling is likely to pick up from its thus-far benign levels.

The domestic economy is reaching a tipping point, says SQM Research’s Louis Christopher, with the property market only a step behind. Valuation increases across the country are set to be wound back as unemployment and falls from the fixed rate cliff lead to forced sales.

The non-bank sector is comparatively small but is growing in scale and impact, writes Thinktank’s Peter Vala. For many borrowers, it’s become a better option than the traditional banks.

More cranes signal greater construction activity and point to a sound economic outlook. Property lender Thinktank examines the current skyline and what it means for the market.

After cutting its teeth as a commercial property lender during the GFC, Thinktank – thanks to strong strategic relationships and conservative credit policies – is well funded and prepared for the market to turn, says BDM Lauren Ryan.

The listed property group formed by former star UBS banker David Di Pilla has gone from a standing start in 2015 to a retail and commercial investment force, with its latest acquisition pushing funds under management to $7.5 billion.

With some real asset trading at 20 to 30 per cent below their fundamental value, HMC’s David Di Pilla says there are “compelling” opportunities for managers that can spot value and raise capital.

With private equity becoming more accessible, retail investors can now take advantage of the asymmetry-of-information and diversification benefits PE offers, while its safe-haven characteristics stand out in the uncertain macro environment, according to David Chan and Cameron Brownjohn.

Housing conditions are tipped to remain soft in the year ahead as central banks continue to raise credit costs, but experts still believe an all-out property market crash is unlikely.

Speaking on a fireside chat during The Inside Network’s recent ESG event in Tasmania, Langley said that while infrastructure assets will continue carrying the burden of inflation there is likely more to be concerned about with REITS, both in the dominant US market and around the world.

While the greater housing market is already reflecting the pain of constricting economic conditions, a new property fund partnership between Trilogy Funds and Michael Birch’s Murray Darling Capital shows the potential of ‘rent roll’ portfolios of rental property management agreements to provide exposure to the supersized Australian property.

While data is a big part of the Michael Birch’s new property fund play, he says the real key to running a rent roll investment is maintaining relationships.