, a new report has found.
When comparing residential property with other traditional asset classes, it outResidential property trumps all traditional investment classes for the best returnsperforms by more than two per cent, according to a PrimeSpace Property Investment Limited report.
Australian and international equities, listed property, cash and fixed interest investments were among those compared to property said PrimeSpace chief executive officer Anthony McDonald.
“Even more interesting was the low risk posed by investing in residential property compared to other investments such as shares. In fact, over a 20 year period residential property did about two and a half times better than international equities with 64 per cent less volatility of returns.”
The research was implemented by Atchison Consultants to test the volatility of investment returns and the most beneficial ways for investors to re-jig their portfolios.
Atchison Consultants managing director Ken Atchison acknowledged that putting money in the bank is the safest option, however the low levels of volatility in the Australian property market can offset the risk with a greater return.
“Our research confirmed that over both the last 10 years and the last 20 years, Australian residential property provided the highest return of all asset classes with only moderate volatility.”
The report looked at the type of residential property that may provide a better outcome, and for Canberra over the past decade houses have performed more poorly than units.
“The annualised returns being achieved by people who have invested in units in Canberra in the past 10 years are higher than those being achieved anywhere else on the eastern seaboard.”
The report’s findings were supported by Smart Property Investment’s February Fast 50 Report, and were not surprising said Colliers International state chief executive Paul Powderly.
“Our own research on the local residential property market has identified medium density housing presents a great investment opportunity in 2012. This was reinforced earlier this month when Smart Property Investment’s expert panel named Canberra as the number one property investment hot spot in Australia.
“A number of new apartment projects will go on sale this year and what both these studies show is that this is where the smart money will be invested.”
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