Managing risk in global property (6)

How will this affect property?(3)

The combined impact of these issues has clearly had a significant effect on market sentiment.

However, there are also some direct implications for property markets


‧ The weak US housing market (the owner occupied market) may also affect the multi family (for rent) sector which represents about 15% of the US REIT market.

Somewhat perversely a weak owner occupied market can have a positive outcome on the multi family sector as families who cannot afford a mortgage move into rental accommodation.

However, given the extent of the US housing market weakness we think that it is inevitable that the multi family market in some regions will be adversely affected and we are positioning our portfolio accordingly


Source: AMP Capital Investors, Australia