took a turn for the worse on Tuesday following the Reserve Bank of Australia’s bigger than expected 50 basis point interest rate rise, which prompted a sell-off across the sector.The value of top companies in the real estate investment trusts index, such as Goodman Group, Charter Hall Group, Stockland and Mirvac fell by 3 per cent or more after the RBA move as investors cashed out of property.
“We had strong valuations across both the entities, which is positive, but that’s obviously being masked by the RBA hike that’s just come out,” Mr Di Pilla said. “It’s not a great day to judge the share price when you’ve got the RBA lifting rates by 50 points, which was on the outer edge of market expectations.”Mr Di Pilla said the interest rate rise, designed to curb inflation, was probably overdue.“I think inflation’s just been bubbling away and they’ve been slow to react, so catching the market a little bit on the hop with a bigger rise today than expected might actually dampen some of the remaining demand pressures.