In their latest Monetary Policy update, the Reserve Bank of Australia states the world economy is expected to grow at a below-trend pace this year and has kept the cash rate on hold at 4.25%. As global markets continue to face steep challenges, market volatility persists.
While market uncertainty prevails, the appeal of higher yielding “bricks and mortar” is set to rise. With a renewed focus on pure rental income and lower risk strategies, AREITs are expected to gain favour with investors seeking steady earnings and the relative security of “hard assets”.
In this month’s Hot Topic, we discuss why a return to the traditional and conservative model is supportive of a positive outlook for the AREIT sector.
On behalf of all of us here at APN, we hope you had an enjoyable Easter break and thank you for your continued support.