Global real estate sector managing a Trump bond rout

Global real estate sector managing a Trump bond rout
Global real estate sector managing a Trump bond rout

After adjusting to Brexit, the global real estate sector is now managing a bond rout triggered by the election of Donald Trump to the US presidency  according to Alistair Elliott, chairman, Knight Frank.

In a recent visit to Australia he said  global direct property investment had already dropped from the record levels of 2015 due to a hesitancy about the right time to buy rather than any change in sentiment towards real estate.

"Post the financial crisis, property has had a strong role and I see no sign of that ebbing... in a world where it is difficult to find returns, property is a relatively secure bet," he said.

"We do not expect this [the slowdown in direct real estate investment] to worsen. Indeed as an increasing quantity of investment capital gathers to seek out yield then there is a case to suggest investment volumes may well begin to increase as we get clarity around the new administration's future plans for the USA and with the UK developing an agenda with key trading partners in Europe."

"Melbourne and Sydney [offices] have real growth and that would give confidence to the buyers compared to other cities where rental growth is reaching its peak."

Tags: 
Property market Donald Trump

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