Low-risk property trumps gov’t bonds

Low-risk, income-generating Australian real estate will continue to appeal to global investors in 2012, investment bank UBS claims.

Real estate yields in Australia, Japan, the ‘core eurozone’, the UK and the US sit at between 2 per cent and 4 per cent over 10-year bonds, and above historic averages, suggesting pricing remains attractive, UBS global property real estate strategist Elisabeth Troni said.

“Yield spreads are well above average in Core Europe, the UK, the US and Australia,” Ms Troni said.

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