Australia’s property stocks are missing out on large waves of global investment that favour residential rental, data centres and telco towers, and healthcare real estate – all of which are assets that comprise only a small component of the local listed market.
Local property stocks hold only a small amount of what is most preferred by global investors: residential rental, data centres and healthcare.The positions survey showed that in terms of global allocation, although most investors were neutral on Australia, the extent of those that were overweight in the local market had fallen from about 30 per cent in 2019 to 19 per cent currently.
“Over time, what we’d highlight is that there’s been a reduction in overweight exposure to Australia,” UBS analyst Grant McCasker told“The global investors’ view of Australia has deteriorated over time. What that largely reflects is global investors’ preferred exposure to various asset classes.