RESEARCH
PROPERTY values continued to drop across all specialist fund types in the first half of 2024, with the second quarter bringing in an overall total return of 4.6%...
According to the latest MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index, the driving factor in this decline was office funds, which saw a 8.7% drop in...
Annual results were also looking bleak, with the overall index total return at -10.4%, the worst results since the months immediately following the Global Financial Crisis...
The downturn was driven by a 13.8% decline in capital growth, which was not enough to offset a positive 4.0% income return...
The top performer over the quarter was retail funds, which saw a total return of -1.6% and income return of 1.2%. With retail funds achieving a total return of...
Industrial funds followed with a decline in value of 8.6% over the last 12 months, for a total return of 5.4%...
On a positive note, the capital growth decline of 2.6% is less severe than the -5.8% recorded in Q4 2023, indicating that the worst losses may be...
In annual terms, the office sector brought the worst performance with -16.4%, with a 19.5% decline in value...
Concerningly, write-downs for office funds appear to be accelerating, with a quarterly decline of 8.7% marking the worst quarterly performance the...
Furthermore, the latest write-downs for office funds have led to a downturn that exceeds the losses incurred after the GFC. The peak-to-trough losses...