AUCKLAND, New Zealand, Oct. 16, 2021 /PRNewswire/ -- Kalkine Pty Limited plans to launch its 'Real Estate Research', providing an elite opportunity to consider property and infrastructure markets in Australia and New Zealand.
The recent housing price boom in Australia lurked investors underpinned by the government's support schemes and low-interest rate regime. Capex spend on buildings and structures gained steam, and increased government spend on public infrastructure added a silver lining.
With an inclination towards stable returns and dividend yields over medium to long-term, the research provides insights on the businesses with decent fundamentals covering diversified segments including building materials, residential and commercial property developers, infrastructure developers, toll operators, REITs, and property management firms.
Growing Market Opportunity
The gross value added by the construction sector in Australia, outgrew all-industry average growth rate of 3.1% in the past decade to 2020 (as per the Australia Benchmark Report in June 2021 by Australian Trade and Investment Commission). Besides, the Reserve Bank of Australia is expecting housing credit to peak at an annualized rate of about 11% in the early next year. In a recent update, the Western Australian government plans to allocate an additional $875 million towards social housing. Similarly, New Zealand housing markets turned red hot during the pandemic as prices nearly doubled over the last seven years, while affordability remains a key concern.
The infrastructure sector comprises of telecom, power, railways, irrigation, water utilities, sanitation, airports, oil & gas pipelines, storage facilities etc. The government's austerity $110 billion infrastructure investment program over the next ten years to better connect roads and transport will be the top growth lever for the sector as per the Department of Infrastructure, Transport, Regional Development and Communications.
Given this backdrop, Kalkine provides insights on companies with rich dividends, solid corporate governance, consistent financial performance, stable ROE, predictable cash flows, and favourable technical indicators evaluated alongside associated risks.
The real-estate sector gained traction during the pandemic as home prices in regional areas scaled new heights due to work from home culture. In Australia, the S&P/ASX 200 Real Estate posted returns of ~95.86% in the past ten years, outpacing S&P/ASX 200 Index by ~20.41% (till October 12, 2021, REFINITIV).
To Summarize, Kalkine's 'Real Estate Research' aims to provide actionable insights which are easy to comprehend, covering diverse sub-sectors after assessing global demand and supply, fundamental analysis, outlook, valuation, technical parameters, and risks, etc.