The Australian REIT sector rebounded in the third quarter of 2024, with a total return of 14.5 percent. The strong performance was in line with global equities as markets prepare for the potential of interest-rate cuts. The Australian listed property sector outperformed the broader market, which delivered a return of 7.8 percent.

The strongest performers were fund managers Charter Hall Group (up 42.8 percent) and Centuria Capital Group (up 26.7 percent), both of which are expected to deliver strong growth when market conditions improve. All stocks delivered positive returns apart from Australian Unity Office Fund (down 5.5 percent), which is in the process of being wound up.

The strong returns delivered in the quarter are reflective of the property sector’s leverage to interest rates, with most economists forecasting interest-rate cuts through 2025.

Dinesh Pillutla is managing director at Core Property Research, based in Sydne