Post by Corval Avenue Limited

In an environment where "real" returns are hard to find, focusing on tangible assets with supply-demand imbalances is more important than ever. With the cash rate at 4.1% and February’s headline CPI at 3.7%, real interest rates are sitting at just 0.4%. However, the outlook changes when you look at expectations. Following recent dislocations in oil markets, inflation expectations jumped in March, with ANZ-Roy Morgan figures hitting 6.9%. If you factor in these near-term expectations, real rates are actually in negative territory. For investors, this reinforces why real assets remain such a critical piece of the puzzle. Historically, real estate has served as a resilient hedge against inflation. While we expect some "heat" to come out of the market as conditions tighten, we believe the systemic undersupply of property will continue to provide a fundamental floor for prices. 👉 Access more expert insights: https://lnkd.in/ggx4cWrX #CorvalAvenue #InvestmentInsights #RealEstate #Inflation #MacroTrends #PropertyMarket #PortfolioConstruction Belinda Bible, Matthew Smith, Tristan Murray, Antonio Sahyoun, Simon Davies, Christopher Hall