Why Australia

A Growth Inflection Point

In the second edition of Charter Hall’s ‘Why Australia’ report, it is clear Australia remains the “Lucky Country”. Economic leadership, enduring superior risk-adjusted returns and diverse mega drivers of growth, contribute to this resilient real estate outperformance.

Australian economic fundamentals continue to outperform. Economic and employment projections outpace global markets, while the diversified sector base continues to generate resilient growth. Importantly, Australia’s real estate and economic demand will benefit from a global demographic divergence, as well as significant long-run mega trends. In particular, the growth in digital infrastructure requirements and energy transition continue to generate significant demand.

This edition of Why Australia also examines ‘Why Now?’. There are some clear signals that Australia’s high-quality real estate asset values are stabilising. The market continues to benefit from low vacancies, robust income growth and restrictive supply. Capital markets remain healthy, with liquidity levels materially higher than past downturns. Australia continues to top investor preferences.

Given the gains across the equity and bond markets over 2024, allocations to the real estate sector are anticipated to improve with the reweighting from the denominator effect. These idiosyncratic factors indicate a movement toward a ‘Growth Inflection Point’.

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