Folkestone

Where do we stand with non-residential property?

Housing and residential property have dominated news headlines recently, but how is the non-residential property market faring? Folkestone assesses the market in line with the RBA’s Financial Stability Review and asks the question, ‘has the market peaked?’ Using historical data and current world-wide trends, the group makes a case for non-residential property investment but cautions that investors need to be disciplined in their property investment strategies.

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Shopping Centres: Back to The Future As Community Centres

The arrival of international retail giants in recent years has not only reshaped the retail landscape, but has challenged how the Australian public thinks about shopping centres. Our shopping centres need to be recast from places solely for transactions, to ones which offers entertainment, cultural and community services to the public.

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Headline numbers don’t tell the whole story

A cursory look at the headline performance of the Australian real estate investment trusts (A-REITs) sector, would suggest all is not well. The S&P/ASX 300 A-REIT Index posted a total return of -5.6 per cent in the year to 30 June 2017, underperforming both the equities market and the underlying direct property market. However, as Adrian Harrington of Folkestone explains, headline Index performance can be deceiving.

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Why active management of A-REITs is key in 2017

Australian Real Estate Investment Trusts (A-REITs) performed strongly in February as underlying real estate values were pushed higher. However, as Folkestone warns, now is not the time to get complacent and invest in index funds as it expects A-REITs Securities Funds that take an active approach to stock selection to outperform the index in the year ahead.

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UNLISTED REAL ESTATE – THE RISKS OF CHASING YIELD

With cash rates at historical lows, investors continue the hunt for yield investments and has seen a lot of capital flowing into prime office, retail and industrial assets in the major markets. Investors are being attracted by the secure income of these assets, underpinned by long-term leases to quality tenants.

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