Invest in real estate stocks in Australia

Invest in real estate ETFs

An ETF, or exchange-traded fund, is a bundle of securities that track a specific stock sector or market index.

Real estate ETFs track REITs and indexes for the real estate market. Instead of purchasing a single stock, ETFs offer access to a collection of stocks in a specific stock market sector, providing more comprehensive exposure.

Like stocks, ETFs can be bought and sold through a brokerage account. When you purchase an ETF, you pay an expense ratio: an annual cost expressed as a percentage of the funds invested and can range from 0.03% to 2.5%.

A popular ETF in the real estate sector is SPDR Dow Jones Global Select Real Estate Fund (DJRE)

What are real estate stocks?

The real estate sector consists of stocks from companies that own, develop and manage properties.

The Global Industry Classification Standard defines 11 stock sectors, each characterised by a specific industry or slice of the market.

The real estate sector can be further broken down into residential, commercial and industrial real estate.

Some real estate companies and trusts specialise in buying only one type of property while others manage multiple segments of the sector.

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Ways to invest in real estate sector stocks

The real estate sector is dominated by real-estate investment trusts (REITs).

These pull the resources of investors together to buy a range of property assets, which the trust then manages for a profit. In most instances, they generate most of their income through rent, returning the majority back to shareholders through dividend payments.

REITs are publicly traded trusts that are bought and sold like stocks.

They offer the opportunity to participate in real estate an Australian investor might otherwise not have access to, like shopping malls and business parks.

Those looking to explore the real estate sector can invest in REITs or real estate ETFs.

Invest in REITs

If you’d prefer to invest in individual real estate companies, REITs can be bought and sold through a brokerage account in Australia.

Most trading platforms come with research and analysis tools designed to help you compare and select investments across sectors. Stock screeners can help you narrow your options to investments available in the real estate sector, listing real estate companies and REITs alongside key metrics to help you assess your options.

Why invest in real estate stocks?

Real estate stocks and ETFs typically offer dividends which act as passive income.

Better yet, real estate assets tend to be viewed as a stable investment, as they’re backed by physical property and often have long-term contracts or lease agreements, which can stabilise incoming cash flow.

Real estate investments can diversify your portfolio, while hedging against inflation. By investing in real estate stocks or funds, you own a piece of a tangible asset without purchasing and maintaining the property firsthand. It’s a practical option for Australians who want to diversify their portfolio with real estate but don’t want to own their own property.

What unique risks does the real estate sector face?

The profitability of the real estate market is closely correlated with occupancy rates and property values. If property values fall, so will share prices.

REITs also tend to be more volatile than physical properties, so while you benefit from having the property managed on your behalf, you also take on more risk.

Compare online brokers

If you want to buy stocks or ETFs in the real estate sector, you'll need to start by opening a brokerage account in Australia.

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Finder Score	AU Trading Fee	US Trading Fee	Asset Class
Promoted Finder Score 9.6 Excellent Moomoo Share Trading Finder AwardExclusive	Finder Score 9.6 Excellent	$3.00	US$0.99	ASX shares, Global shares, Options trading, US shares, ETFs	Finder exclusive: Unlock up to AUD$4,000 and US$4,000 in $0 brokerage over 60 days. T&Cs apply.	Trade major markets with built-in social trading tools.	$100 REWARD Go to siteView details Compare product selection Compare	loading
Promoted Finder Score 8.7 Great eToro	Finder Score 8.7 Great	US$2.00	US$2.00	ASX shares, Global shares, US shares, ETFs, Cryptocurrencies	Bonus offer: Get USD$500 bonus in stocks if you deposit at least USD$5,000. Ends 30 Apr 2026. T&Cs apply.	CFD service. Capital at risk. Trade a range of assets from a single account with access to social trading features.	$150 REWARD Go to siteView details Compare product selection Compare	loading
Promoted Finder Score 9.8 Excellent Webull Finder Award	Finder Score 9.8 Excellent	$1.00	$0.00	ASX shares, Global shares, Options trading, US shares, ETFs, Cryptocurrencies	Welcome offer: Receive 5 US fractional shares by depositing or transferring AUD$500 or more into a new account. 2% cashback is also available to those who provide additional funding and execute a trade in the US market. Expires on 30 June. T&Cs apply.	Invest in over 15,000 shares, options, and $0 Brokerage on all U.S. and Australian Chess-Sponsored ETFs.	Go to siteView details Compare product selection Compare	loading
Finder Score 9.3 Excellent Tiger Brokers Finder Award	Finder Score 9.3 Excellent	$3.00	US$2.00	ASX shares, Global shares, Options trading, US shares, ETFs	Deposit any amount and receive $20 to trade in Tiger Brokers. Plus 4x zero brokerage trades and no FX fees on the first $2,000 you exchange every month. T&Cs apply.	Trade US, Asian and CHESS-sponsored ASX stocks, China A-class shares, plus US and Hong Kong options and ETFs.	$120 REWARD Go to siteView details Compare product selection Compare	loading
Finder Score 9.9 Excellent CMC Invest Finder Award	Finder Score 9.9 Excellent	$0.00	$0.00	ASX shares, Global shares, Options trading, US shares, mFunds, ETFs, Cryptocurrencies	Trade 45,000+ listed securities across the local markets and 15 major global exchanges.	Go to siteView details Compare product selection Compare	loading
Finder Score 9.3 Excellent IG Share Trading Finder Award	Finder Score 9.3 Excellent	$0.00	US$0.00	ASX shares, Global shares, US shares, UK shares, ETFs	Go to siteView details Compare product selection Compare	loading

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Bottom line

The real estate sector offers the opportunity for stable dividends backed by physical assets but isn’t immune to risk. Australian investors should be wary of shifting property values and occupancy rates before they invest.

Research your trading platform options to find the brokerage account best suited to your needs.

Frequently asked questions

• How do I follow the real estate sector?

  Third-party research providers like Bloomberg offer sector-specific analytics you can use to stay up-to-date on sector price fluctuations.

• How do I find real estate stocks?

  Most trading platforms come with research tools that can screen stocks by sector. Once you’ve narrowed down your options to companies within a sector, organise available assets metrics, including stock price, rate of return, valuation and total outstanding shares.

• How do you choose the best real estate stocks to invest in?

  Start by assessing a company's financial health, dividend yield and exposure to different property sectors such as residential, commercial or industrial. You can also compare historical performance, management quality and growth potential using tools available on your brokerage platform.

• Are real estate stocks the same as REITs?

  Not exactly. Real estate stocks are shares in property-focused companies, while REITs (Real Estate Investment Trusts) are specific vehicles that own or finance income-producing properties. REITs must distribute most of their income as dividends, which can make them attractive to income investors.

• What factors affect the performance of real estate stocks?

  Interest rates, property market trends, economic growth and demand for commercial or residential space all influence the performance of real estate stocks. Broader market sentiment and government policies around housing and infrastructure can also have a significant impact.

• Can you invest in property through ETFs?

  Yes. Real estate ETFs bundle together a range of listed property companies or REITs, giving you diversified exposure to the sector without having to pick individual stocks. This can be a more convenient and lower-cost way to invest in real estate on the share market.

• Do real estate shares pay dividends?

  Many real estate companies and REITs regularly pay dividends, often sourced from rental income. However, dividend levels can fluctuate depending on market conditions, interest rates and company performance, so it's worth reviewing dividend history before investing.

• What are the risks of investing in real estate stocks?

  The main risks include property value fluctuations, rising interest rates and economic downturns that can reduce occupancy rates or rental income. Because these stocks are also traded on the share market, they're subject to broader market volatility.

• Can I invest in international real estate stocks from Australia?

  Yes. Most online brokers in Australia offer access to global exchanges, allowing you to buy international REITs or property stocks listed in markets like the US, UK and Asia. Keep in mind that currency fluctuations and different market regulations can affect returns.

• How much should I invest in real estate stocks?

  That depends on your investment goals, risk tolerance and current portfolio mix. Many investors treat real estate as a diversification tool, allocating a portion of their portfolio rather than going all-in on one sector. Consider speaking with a financial adviser for guidance.

• Are real estate stocks a good hedge against inflation?

  Often, but not always. Because property values and rents tend to rise with inflation, real estate stocks and REITs can offer some inflation protection. However, rising interest rates that usually accompany inflation can also put pressure on property companies.

• When is the best time to buy real estate stocks?

  There's no perfect timing, but many investors look to buy when property valuations or share prices soften and long-term growth prospects remain strong. Monitoring interest rate trends, market cycles and company earnings can help you make more informed decisions.

Written by

Shannon Terrell

Writer

Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies. See full bio