Australian real estate private credit is a hot topic, with substantial growth of approximately 10 percent to 12 percent per year over the past five years, which has attracted large inflows of international institutional capital into the sector due to a number of factors:
Diversification benefits: The Australian market offers a unique opportunity for international investors to diversify their existing credit portfolios by gaining exposure to a stable, developed economy with robust legal and regulatory frameworks. This diversification can reduce portfolio concentration risk and enhance risk-adjusted returns.
Attractive risk-adjusted returns: Real estate private credit in Australia typically delivers higher yields compared to traditional fixed-income investments while offering the security of well-collateralised loans. The sector’s growth is driven by strong fundamentals, such as long-term population growth, urbanisation and c