Investors in alternative real estate subsectors are no longer onto a secret. But they remain a select breed. Alternative assets generally made it into the black even during a bleak year.
The life sciences real estate sector stands out as a unique potential opportunity among alternative property types. It offers attractive — and resilient — risk-adjusted returns in an environment where there is deep demand but a deficiency of good-quality supply.
The Australian continent and its metropolis Sydney should not be underestimated. This business location in particular has the potential to join the ranks of global players, and the Australian government’s ambitious projects aim to ensure that this is the case.
The Australian real estate market has been affected by higher interest rates over the past 12 months. The inflationary consequences have been widespread and Australia has been affected in similar ways to its peers, as higher prices are being factored into the economy.
It is a wee bit ironic that the term “sustainability” has become associated with a liberal political orientation, when the act of “sustaining” something is an essentially conservative one.
Investors are wondering if logistics demand and ecommerce tailwinds still support logistics allocations, particularly given ongoing supply-chain disruptions, high transportation costs as a percentage of tenants’ logistics cost and high capex.
At a recent Knight Frank outlook event, head of research for Asia Pacific Christine Li noted, “the world is lurching into a polycrisis era — a cluster of related global risks with compounding effects.”
Investors should be prepared for increased volatility, and the global macroeconomic situation is likely to worsen, according to the second quarter global macro outlook from Manulife Investment Management.