- A weaker growth outlook would mean weaker demand for property
- Sensible to be more conservative around lease up assumptions and rental growth
- More significantly, risk premium is also moving up.
This means 3 things for investors:
- More yield compression;
- Some investors will take on more leverage; and
- Increase inflow to niche property sectors – student housing and aged care though these come with operational risks
Paul sees income continuing to drive returns and positive capital growth due to widening in risk premium.
How should global property investors be positioned?
Read the 3rd edition of our real estate summary.
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