Property offers better returns than share market

Enzo RaimondoDecember 8, 2020

While the local economy remains healthy, property is likely to benefit from uncertainty in the stock market.

The last 20 years have shown that investment in Melbourne property has provided better returns that in the stock market, a factor that will encourage investors to shift their portfolio in favor of property.

The same study by RMIT which showed quarter on quarter growth of 1.6% for property compared with 1.3% for shares between 1990 and 2010. It also showed less volatility than shares.

A shift to property will not happen quickly. Investors have to study the market and then compete to buy the property of their choice. There are also higher transactional costs making it important to make the right decision.

Enzo Raimondo is the CEO of the Real Estate Institute of Victoria.

Enzo Raimondo

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

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