Citi thinks it is time to buy Australian REITs as rates near peak, new budget seen to help

Stockland

28/06/2026 20:49

** Citi says residential REITS in Australia have sold off 23-33% since Oct 2025, pricing in a tough housing cycle given central bank rate hikes
** The Reserve Bank of Australia hiked rates three times this year to 4.35%
** Citi however, sees recovery in demand in calendar year 2027, expects rates to stabilise; Citi sees one final hike to 4.6% in November before cuts begin in second half of calendar 2027
** Brokerage also expects 2026-27 budget changes to help new housing developers as investor capital migrates from established to new dwellings
** Adds Stockland SGP.AX and Mirvac MGR.AX trading at trough price-to-earnings multiples relative with prior housing downturns
** Upgrades Stockland and Mirvac to 'buy', with preference over Stockland given larger selloff and upside from data centre pipeline, amongst others
** YTD, broader Australian real estate sub-index .AXRE down 4.6%, SGP down 24.6%, MGR down 12.9%


 (Reporting by Nichiket Sunil in Bengaluru; Editing by Chris Reese)
 ((Nichiket.Sunil@thomsonreuters.com))