‘Mispriced property stocks will have their day’

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Down close to 20 per cent so far this year, Australia’s real estate investment trust sector has suffered from rapid rates rises. Next year could be its time to shine, according to a top US investment manager.

US-based Joseph Smith, who oversees $US12 billion in property stocks through CBRE Investment Management, is quietly confident listed real estate will bounce back into positive territory next year as the cycle of rising interest rates finally levels out.

The Australian REIT sector is down about 20 per cent for the year so far, one of its worst yet. It’s no surprise to Mr Smith, given that capital-intensive sectors such as real estate are highly sensitive to rate changes.

 

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Yeah right, next year.

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