Dexus Research today released the Australian Real Asset Review Q2 2024. This report describes the key trends in Australia’s main real asset markets including commercial real estate, healthcare and infrastructure, including a spotlight on student accommodation.
Key observations:
- While capital markets appear challenging in the short term, the outlook for real assets is expected to improve over the next 12 months given a forecast end to the interest rate tightening cycle.
- A strengthening of the AREIT index in Q1 2024 is an encouraging sign for real assets more broadly as it reflects investor confidence and tends to be a leading indicator for the sector.
- Infrastructure deal activity is expected to improve in the year ahead. Investment demand over the long term will be supported by positive secular trends such as the energy transition, digital transformation and demographic shifts.
- An undersupply of quality student accommodation points to opportunities for investors given the tertiary education sector is poised for significant growth.
- Investment in the retail sector is looking more compelling given falling vacancy rates and low levels of shopping centre supply.
Peter Studley, Dexus Head of Research said: “Overall, there is a lot to be positive about in relation to real assets, with many sectors underpinned by strong thematics. There should be some great opportunities for investors over the next year or two as the interest rate cycle stabilises and eases.”
Related Articles
