REISA UNSW: Newsletter T1W9

Welcome to Term 1, Week 9 of 2025!

As we near the second-last week of term, we hope you’ve had the chance to engage with the wide range of REISA events held throughout the term.

If you are keen to continue learning more about the real estate investment world and want to be the first to hear about our events and opportunities, we strongly encourage you to like and follow the REISA UNSW Facebook and Instagram.

Warm regards,
REISA UNSW Team

Real Estate News

Property A Safe Haven in Trade Turmoil?

Ever since “Liberation Day” on April 2nd, financial markets have been volatile, and investors have even lost significant confidence in traditional “safe” investments. With the US Treasury Bond sell off, an “ominous sign that the world [is] losing faith in America” according to ABC’s Chief Business Correspondent Ian Verrender, where should investors put their money? One answer could be Australian Property. Australia’s weak dollar (which reached historic lows of 59.55 US cents on April 8), and the prospect of 3 more rate cuts in 2025 could make local real estate more attractive to foreign capital.

While stocks like Goodman Group, the country’s largest real estate stock had lost 28% since the start of the year and took a battering since the trade war real estate investment trusts (REITS) have proved more resilient in this crisis. Stockland, Mirvac, Vicinity Centres, Charter Hall Group, Charter Hall Retail, the HomeCo Daily Needs REIT, Ingenia Communities and Region Group, finished on April 9th above their December 30 close according to Robert Harley from the AFR. In Harley’s article he interviews key figures including Tim Church, Morgan Stanely’s chair of investment banking in Australia, Deborah Coakley, Managing Director of QIC Real Estate, Sameer Chopra, CBRE’s head of Research and Howard Penny the director of Real Estate at Citi. 

There is a strong consensus among these experts that the prospect of 3 more rate cuts by the RBA will drive increased investment in the property market. Church believes “we will be a bit of a safe haven” while Citi’s Penny says the reciprocal tariffs on Australia will unlikely derail Australia’s cyclical recovery while suggesting REITS may be less affected than other sectors in the market. 

Housing Crisis Deepens 

In other news, over half of the projects awarded under the federal Labour government’s $10bn Housing Australia Future Fund (HAFF) are stuck with no signed contract. This could result in 5565 homes being unfunded depending on the Coalition’s policies. Under the HAFF, Housing Australia was looking to finance the delivery of 20,000 new social and 20,000 new affordable homes over Australia over 5 years from 2024. Under the Caretaker Conventions which Housing Australia now requires to operate in line until the resolution of the federal election, this may result in 28% of the target being unfunded. If unfunded, this will continue to worsen the current supply lags in the Australian property market.

Key Transactions in Shopping Centres

Dexus will be forced to relinquish a half-stake in Sydney’s Macquarie Centre Shopping Mall, valued at $830mm. Dexus has been in a dispute with UniSuper and Cbus Property for control of the asset. The court has sided with the superannuation giants. GPT, which is Dexus’ ASX Rival, will manage the entire centre for the superannuation funds.

Similarly, Blackstone has exited Top Ryde City in the city’s north west with a value estimated around $600mm. The mall was once a key holding in the $3bn portfolio of 10 shopping centres and is one of the last shopping centres in the portfolio being sold. In a separate move, Blackstone may transfer 75% of its stake in Sydney’s Grosvenor Place with Investa.

Written by: Kael Borello

Thank You To Our 2025 Sponsors:

Real Estate Investment Student Association (REISA), is a student run society founded in 2023 with the objective of providing students with opportunities across all aspects of Real Estate Investment, including Private Equity, Advisory, Development, and Asset Management.

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