Fundamentals are set to drive momentum in the multifamily sector in Australia. For many Australians who are unable to cross the total home affordability hurdle, the multifamily sector can provide an interim and scalable solution. It need not necessarily displace the home ownership aspirations totally, according to UBS. In fact, the Australian multifamily sector can potentially allow future homebuyers to set up their family units while accumulating their financial resources in a more cost-rational manner.
The fundamental appeal of the multifamily sector lies in its defensive nature and strong income security characteristics. The same capital markets trajectory could happen in the Australian multifamily sector once it is firmly established. The implication is that investors which are able to ride the early part of this cycle may be able make the most out of this limited window of capital value growth while still enjoying the steady income profile of the Australian multifamily s
