The global credit crisis will not affect long term property returns as it pertains to liquidity and not property, which continues to be underpinned by solid fundamentals, according to APN Funds Management.
Nowhere is this more obvious than in Australian office markets, according to recent Property Council of Australia reports, which indicate that vacancy rates continue to tighten in most capital cities.
APN Funds Management head of investments Michael Doble said property was best judged over five to ten years and investors must continue to stay focused on long term performance.
Doble urged investors and advisers to keep in mind that the current conditions in Australia's listed property markets are fundamentally much stronger than the LPT crisis of the early 1990s.
According to Doble, the problem lies with capital management, rather than underlying property, rents or tenants.
"Income from property investments should be sustainable and there are expectations of rental growth across the retail, office and industrial property sectors," he said.
"Unless we have a deep, long recession, we know that property offers a strong defensive element to a portfolio."
Doble suggested that areas of renewed focus for property investors going forward include sustainable rental streams and risk management.
