Brave at Heart
In June we started coverage of Australian markets with the inaugural issue of The Institutional Real Estate Letter – Australia, a quarterly supplement to our Asia Pacific publication. In the past, we covered Australian markets as part of the rest of Asia. But there are very good reasons to have a separate publication for Australia, as Australian markets are different from the rest of Asia in many respects and deserve special attention.
The Australian real estate market is one of the most institutionalised markets with a large number of listed property trusts and traditionally large investments in real estate by superannuation funds. Australian markets also seem to have a low cyclical correlation with Asian markets, which is an important factor for institutional investors looking for diversification.
But many institutional investors suffered substantial losses on their equity and fixed income portfolios as a result of the global financial crisis. Th