Rising retail asset confidence in June quarter accelerates unlisted and direct property returns

13 Sep 2021

Australia’s return to retail stability and sustained confidence in industrial assets in the second quarter of 2021 have led to stronger 12-month returns for unlisted property assets and an impressive turnaround for direct property.

In the three-months ending 30 June 2021, unlisted property returns outperformed both A-REITs and Australian equities, according to data released by Zenith Investment Partners, Australian Unity, MSCI, the Property Funds Association and the Property Council of Australia.

Due to the growth of unlisted property funds in the second quarter, 12-month returns improved and stood at 18.7%, with performance underpinned by tightening capitalisation rates and recovering rental incomes for COVID-impacted assets.

Dan Cave, Senior Investment Analyst, Zenith Investment Partners, said that figures from the latest quarter have given investors the full picture of how Australian property has fared in our first full financial year affected by the pandemic.

“Despite challenges in early FY2021, it is pleasing to see an impressive recovery across listed, unlisted and direct property, against a backdrop of GDP growth, lower unemployment, climbing vaccinations and retail confidence returning.” Mr Cave said.

For more information, view the quarterly fact sheet.  

About the Quarterly Property Investment Fact Sheet

The Property Investment Fact Sheet is an independent perspective of the risks and rewards of property compared to other asset classes such as equities. Zenith Investment Partners, MSCI, the Property Funds Association and the Property Council of Australia issue the Property Investment Fact Sheet each quarter. All data is sourced from MSCI, an independent global provider of research-driven insights and tools for institutional investors. Commentary is provided by Zenith Investment Partners.

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