Australia Property Market Shows Resilience – Investment Insights
Despite all the gloom around Australian property, prices have held up relatively well over the past year. There has been a slowdown in investor activity since the end of 2015 – but this has been engineered by the corporate regular and APRA reigning in the banks and the way that they lend to investors. Prices have remained strong – the aggregate Australian market is in positive territory and even strong markets like Sydney and Melbourne continue to report high single digit annual price growth.
Those hoping for an Australian property crash have been disappointed. It seems like the market will further consolidate in 2016 – interest rates remain at historically low levels and the unemployment rate is lower than what many had expected. Markets like Brisbane and Adelaide are starting to post positive returns after periods of underperforming the traditional hotspots of Sydney and Melbourne.
Our Bullish Australian Property portfolio provided by PortfolioInvestor platform is holding up relatively well, it is 4.6% higher over the month ending 25 March and8.5% lower over the year, which is a 2% outperformance on the overall index.* The best performing stocks over the past month have been CSR, Bank of Queensland and Lend Lease.* These are all businesses with heavy reliance on the domestic property market. Investors are backing these names because they see strength in the market and don’t buy into the gloom that many have incorrectly painted for some time.
Australian property as an asset class has continue to show its ability to generate sustainable returns and looks likely to do so throughout 2016.
To find out more about Invast’s PortfolioInvestor platform – and strategies like Bullish Australian Property – click here.
Invast Investment Committee
These are our initial impressions only, please make sure you always read all disclaimers on this website and individual reports very carefully. The Invast team of advisors are happy to answer any questions you may have, so give us a call today on 1800 468 278 or email email@example.com. Alternatively, use our live chat facility on invast.com.au.
*Past performance is not indicative of future performance. The calculation of the returns is based on the performance of the actual underlying securities, in accordance with the weighting envisaged by the portfolio. These performances exclude financing and commission costs.
The Invast PortfolioInvestor platform offers a collection of Strategic Investment Portfolios (SIPs). SIPs are professionally researched and constructed portfolios of CFDs over underlying stocks and ETFs, which reflect popular market themes or strategies. You can buy SIPs across local and international stock exchanges in one click.
American Defence US
A selection of companies which will benefit from an increase in military spending and defence budgets as tensions grow worldwide.
This SIP is a portfolio stocks that are in the business of luxury living.