Why have these real estate values remained in the news today?
The Australian stock market showed signs of recovery today, with the benchmark ASX200 index rising 0.972% to 7331.800 points at 2:33 p.m. AEST. Nine of the 11 sectors traded higher, with the Materials sector becoming the best performing sector in the intraday trading session.
The S&P/ASX 200 A-REIT Index (ASX:XPJ) was up 0.173% at 1613.200 points at 2:43 p.m. AEST.
Over the past couple of years we have seen the booming housing sector in Australia. Recently, the Reserve Bank of Australia said that if interest rates were raised by two percentage points, house prices would fall by 15% in two years, adjusted for inflation. According to the recent Estate Home Price Report released on Thursday, home prices in Melbourne fell 0.7% to a median of A$1.092 million in the March quarter.
Meanwhile, the slowdown in Sydney’s housing market became more evident during the first quarter of 2022. According to the report, house prices stagnated and unit prices fell to provide the most fragile result since the quarter. of June 2020 and one of the most notable downturns of any capital city.
It can be said that if interest rates increase and this leads to lower house prices, the demand for houses will probably increase in Australia.
On the other hand, Australia is reeling from the rental crisis, with house rents in capital cities rising by 13.8% on average. Soaring rents have resulted in financial strains for low-income groups.
In this article, we’ll look at the recent market performance of three ASX-listed property stocks Unibail-Rodamco-Westfield (ASX:URW), Shopping Centers Australasia Property Group (ASX:SCP) and Dexus Property Group (ASX:DXS).
Read more: XRO, ASX, SCG: how are these ASX 200 stocks performing?
Unibail Rodamco Westfield (ASX:URW)
All eyes were on the France-based commercial real estate company‘s share price today (April 28) as the company announced its first-quarter 2022 business update. company during the period increased by 34.2% compared to Q1-2021, reflecting the strong post-COVID-19 recovery and asset deliveries.
The company’s tenant sales recovered further during the period and reached 93% of 2019 levels in the first quarter and 95% in March, supporting the improvement in rental collection to 93% for the Group .
Unibail confirms its AREPS 2022 guidance of €8.20 to €8.40 per share.
Today, shares of Unibail-Rodamco-Westfield were spotted up 1.149% at A$5.280 per share on the ASX at 3:52 p.m. AEST. Unibail shares are up 5.18% since the start of the year (YTD).
Image source: © Ekapolsira | Megapixl.com
Shopping Centers Australasia Property Group (ASX: SCP)
The share price of Shopping Centers Australasia Property Group (ASX:SCP) traded down 0.480% to AU$3.105 per share on ASX at 3:55 p.m. AEST today. The company is part of the real estate industry group on ASX as it has two internally managed real estate investment trusts (REITs). Shopping Centers Australasia Property Group has a market capitalization of A$3.48 billion.
In its financial results, half year ended December 31, 2021, the Group reported growth in net profit after tax (NPAT) of 320.2% compared to the first half of FY211.
In December 2021, the Group announced the creation of a new fund with GIC to invest in established metropolitan shopping centers across Australia. The Group will sell seven properties totaling A$284.5 million at a weighted average capitalization rate of 4.84% of SCP’s current portfolio to the SCA Metro Fund. The company expects this sale to be finalized in early 2022.
Shopping Centers Australasia Property Group’s share price has gained 22.24% over the past year.
Dexus real estate group (ASX: DXS)
Shares of Dexus Property Group (ASX:DXS) have been on the investor watch list after the company entered into a share purchase and sale agreement with Collimate Capital Limited to acquire the property and infrastructure businesses Collimate Nationals on Wednesday (April 27, 2022).
Collimate Capital Limited is a wholly owned subsidiary of AMP Limited. The acquisition involves a total cash consideration of approximately A$450 million, subject to conditions.
Dexus Property Group is an ASX-listed Australian property investment trust with a market capitalization of A$11.83 billion. Today, Dexus shares were trading up 1.727% at AU$11.190 per share on the ASX at 4:00 p.m. AEST. Dexus Property Group’s share price has gained 9.60% over the past year.
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