Australia's Macquarie sees global growth underpinning real estate markets |
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Tue, 19 Jun 2007 06:56
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SYDNEY (XFN-ASIA) - Returns on real estate investment around the world are being underpinned by a strong global economy, Macquarie Bank Ltd said in a 2007 real estate outlook report.Launching the report, the head of research for Macquarie's real estate business, Rod Cornish, said there are global growth opportunities for real estate investment, though compared to 12 months ago, investors need to be more selective.'Savvy investors need to remain alert to signs like tight yields, over-aggressive pricing of rental expectations, and diminished accountability for risk that will signal the change in the cycle,' Cornish said.He said the strength of the global economy is continuing to drive stronger real estate fundamentals, partly due to high levels of liquidity as the Japanese and European economies strengthen, while a slowdown in the US is having a limited effect due to the sheer power of the world economy.Cornish said the cycle is expected to run for at least 12 months but if the US economic outcome is stronger than anticipated, positive real estate fundamentals could run longer.The global head of Macquarie's real estate business, Stephen Girdis, said real estate investment opportunities will largely be confined to markets where there is a positive gap between property yield and long-term bond yields, including residential and office markets in Japan, the office sector in Europe and Asia, European logistics real estate and the Sydney and Melbourne office sector.bruce.hextall@xfn.com
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Australia's Macquarie Bank FY profit up 60 pct on strong global market - UPDATE 