July 2020
Insights

A Strong Australian Understanding and Philosophy

With an established and historically stable economic environment, Australia provides investors a strong platform for returns.

 

Key macro economic considerations

  • Sustained low interest rates and increasing investor appetite have resulted in stable asset values with strong competition for institutional real estate from both local and off-shore investors
  • Competition for yield can often be over bid and therefore discipline on capital value is a key consideration of asset acquisition
  • Strong competition for A-grade assets has created an opportunity to secure secondary assets in prime locations that require active and experienced management to improve income and add value
  • Well located assets provide downside protection and still have the capacity to deliver optimised returns through focused management
  • The population is expected to shift to follow jobs while maintaining affordability and lifestyle choices
  • Population growth is expected to be concentrated in metropolitan centres expanding close to capital cities
  • Australia has historically provided an established fiscal environment with consistent economic stability

 

Macro considerations

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