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.