Sunday, September 30, 2012

Lower volatility, higher returns in direct property: report


A comprehensive report commissioned by the Property Fund Association of Australia (PFA) and released today compares the  performance of unlisted and direct property versus listed property over a range of periods in the past 25 years.

With a primary focus on income and total returns, the research looked at the volatility of the unlisted sector and its correlation with other asset classes, including equities and listed property.
PFA president Robery Olde says that since the GFC (global financial crisis), direct property has demonstrated the kind of resilience and positive total returns that other asset classes simply haven’t.”
Trends indicate investors are catching on. There has been a “significant increase” in direct property compared to the listed sector in the past 12 months, he says.
In Australia, there’s currently more than $55 billion in direct property assets under management.

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