Bubble, bubble, housing trouble | I shop therefore I am : Why Asia is different | How your brain flushes money down the drain
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Want to know the source of wealth for most Australians? Well, look around you. As a share of wealth, property tops the list at 60% of an average individual’s overall wealth. According to Citi, surging house prices in Sydney and Melbourne have been a prime contributor to the 30% increase in household wealth over the past three years.

The recent price rises in these cities and widespread media coverage of a looming crash, the surge in apartment building along the east coast and very low rental yields across the country, have many investors wondering whether residential property really is as safe as houses. 

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In Chinese, a “tai tai” is a wealthy lady of leisure. Clara, lead protagonist in Singaporean film Gone Shopping, is a tai tai slap-bang in the middle of a mid-life crisis.
Were she Australian, Clara might have ditched her career as an events organiser, escaping to a health retreat in Ubud before becoming a yoga teacher. In Singapore, she moves into a shopping centre. The story, one of love and loss and breaking with convention, reveals the cultural differences between Australian and South East Asian shopping habits.
For investors in APN’s Asian REIT Fund, this is a cultural curiosity with financial implications.

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Ultimately, only two things drive financial markets – fear and greed. Albeit that the AREIT market has bounced off its lows, the AREIT index is down ~ 4.25%1 since the market peak in August 2016, it’s the former rather than the latter driving property trust prices over the past 10 months or so.

The reason is that investors have been fearful of missing out on the “Trump trade”, the rally in riskier equities due to Trump’s proposed stimulatory policies in the US. They are also fearful of holding interest rate sensitive stocks like AREITs in a rising rate environment. The Solution? Sell property trusts. Buy risk.
Click here to take a look at these factors.

Join Mark Mazzarella, Analyst in the funds management team at APN Property Group, as he debunks the myth that only the wealthy can invest in commercial property and shares the benefits of adding property for income to your investment portfolio.

Click here to join the webinar which will be held on Wednesday, July 12 at 1pm.