Total annualised returns for property jumped almost six-fold in the second quarter compared to first quarter results, according to property research firm IPD.
Returns on all property types including income and capital rose to 5.9%, but the research group forecasted future rises would be more moderate.
According to Anthony De Francesco, IPD managing director for Australia and New Zealand, the sharp rise came from a pullback in negative capital growth. He added that while the property market will continue to see upswings the pace will be moderate in line with the general softening in the economy.
Annualised capital returns which were minus 6.1% in June last year, should return positive in the next quarter.
The biggest improvement was made in office assets which rebounded from minus 0.9% in March to 5.1% in June.
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