Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Is the Australian Property Market Turning Around?

ASX REIT owners like Charter Hall Group (ASX: CHC) and Mirvac Group (ASX: MGR) are trading higher this morning, possibly due to renewed positivity around the housing market.

ASX property groups like Charter Hall Group (ASX: CHC) and Mirvac Group (ASX: MGR) are trading higher today, possibly due to renewed positivity around the housing market.

REIT’s Trading Higher

While the S&P/ASX 200 (INDEXASX: XJO) is up 0.5% today, REIT’s are trading nearly 2% higher.

Charter Hall shares are up 5.08% while Mirvac shares are nearly 1.5% higher. Both companies have been raising equity for big acquisitions recently, with Charter Hall Long WALE REIT (ASX: CLW) coming out of a trading halt today after raising $200 million. Mirvac recently made a $333 million acquisition after an equity raising as well.

Why are REIT’s Looking Bullish?

New CoreLogic data came out recently, showing that, while house prices still look to be falling, the decline is slowing.

Other recent news, like APRA’s proposed changes to the minimum serviceability rate, has also raised hopes that property could be on the way back up.   

ASX property shares also received a boost following the election result, which crushed all chances of negative gearing reform.

Time to Buy REIT’s?

The recent acquisitions and equity raising from the big ASX property companies would suggest that those in the sector are feeling confident. There are certainly signs that the property market decline is slowing, but the figures also suggest we haven’t seen the bottom just yet.

The CoreLogic data mentioned above showed that Sydney house prices fell 0.5% in May while Melbourne prices fell 0.3%. While the decline has slowed, those are still significant drops for monthly figures.

Where Charter Hall may have an advantage over Mirvac is the fact that Mirvac invests quite heavily in residential projects, whereas Charter Hall tends to focus on commercial and industrial investments. A decline in house prices doesn’t necessarily translate to a decline in commercial property prices, so Charter Hall might benefit from lower rates while dodging most of the price declines.

Even so, if you’re looking for income from your portfolio, there may still be better options. The three high-quality, dividend-paying companies in the free report below might be a good place to start.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content