With the current real estate investment cycle entering a more mature phase globally, there is a healthy level of interest around which real estate strategies present the most compelling outcomes for investors when we look beyond the short term gyrations in listed markets and 24 hour news cycle (and tweets).

Our ‘US Real Estate, Beyond The Gateway’ insights paper provides an alternative view and compelling real estate strategy for investors considering an offshore real estate allocation over the medium term.

The key themes are:

  • The United States of America (US) is the largest, most liquid and diverse real estate market in the world and accordingly, can deliver diversification benefits to compliment Australian investors domestic real estate holdings
  • US real estate fundamentals are well balanced but significant pricing disparity between the most liquid and highly regarded US markets, i.e. Gateway markets, relative to other major US markets, is creating both risks and opportunities for investors
  • Specific major US markets outside of Gateway cities present an opportunity for investors to achieve higher returns with lower relative fundamental and pricing risk compared to the Gateway markets 
  • In a lower growth world and with further yield compression limited, real estate investors should be focussing on investments that present superior income growth opportunities
  • Macro-market positions are expected to under-perform more nuanced and select investment strategies going forward – now is the time to position real estate assets and portfolios for more volatility and very different micro-market supply and demand driven growth patterns
Download our whitepaper to read a more detailed commentary regarding these themes.