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THINK Australia: What can we infer from global interest rate trends?

Research

In our latest research report, Harry Tan (Head of Research, Asia-Pacific) and Juan Manas (Senior Analyst) discuss what global interest rate trends could mean for the Australian real estate market.

A ‘low for long’ global monetary landscape is likely to overshadow the real asset markets for some time to come. Even while the current debate over future Fed policy intensifies, subdued growth and consumer price inflation outlook will likely keep monetary policy very conducive across many other monetary jurisdictions. The global ‘hunt for yield’ in turn works in favour of core institutional investors looking to invest into stabilised income-recurring properties. Highly liquid, transparent and fundamentally strong markets, such as Sydney and Melbourne, will continue to benefit from strong capital market interest, with both income and re-pricing helping to drive relatively strong medium-term total returns.

 

THINK: Australia Interest Rates 

Read the full report here

 

This document is intended solely for the use of professionals and is not for general public distribution. Any assumptions made or opinions expressed are as of the dates specified or if none at the document date and may change as subsequent conditions vary. In particular, the document has been prepared by reference to current tax and legal considerations that may alter in the future. The document may contain "forward-looking" information or estimates that are not purely historical in nature. Such information may include, among other things, illustrative projections and forecasts. There is no guarantee that any projections or forecasts made will come to pass. International investing involves risks, including risks related to foreign currency, limited liquidity particularly where the underlying asset comprises real estate, less government regulation in some jurisdictions, and the possibility of substantial volatility due to adverse political, economic or other developments. Past performance is no guarantee of future performance. The value of investments and the income from them may go down as well as up and are not guaranteed. Rates of exchange may cause the value of investments to go up or down.Any favourable tax treatment is subject to government legislation and as such may not be maintained. The valuation of property is generally a matter of valuer’s opinion rather than fact. The amount raised when a property is sold may be less than the valuation. Nothing in this document is intended or should be construed as advice. The document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. In Australia: this document is issued by TH Real Estate (Australia) Limited ABN 98106 690 444, AFSL 460770. In Europe; this document is issued by Henderson Real Estate Asset Management Limited (reg. no. 2137726), (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3BN) which is authorised and regulated by the Financial Conduct Authority to provide investment products and services. Telephone calls may be recorded and monitored. COMP201600364

Harry Tan

Harry Tan

Head of Research, Asia-Pacific

Harry's biography