Inflows into real estate investment trusts (REIT) and property will pick up as investors continue their search for yield.
Poor markets and falling cash rates mean investors are looking for strong yield prospects elsewhere.
"I think it's starting now, and I think part of it is because we have seen good performance. In the last reporting season you didn't really see any strong negative surprises," BT Investment Management portfolio manager of property securities Julia Forrest told InvestorDaily.
"I think it's for the very reason [that] if you've got 3 per cent growth and 3 per cent inflation, people have to really starting thinking about what they are doing with their money.
"If you can get 3 per cent growth and 6 per cent yield, you have a 9 per cent total return. That is what people should be expecting from REITs."
Blue Sky Alternative Investments property division managing director David Laverty agreed there was a flight to quality property assets.
"They are picking the eyes out of the REITs that they think are offering a good rate for yield," Laverty said.
He also said he expected investment opportunities would start to draw investors out of cash to "chase the high yield that these REITs are offering now".
The positive outlook for the sector following a consistent steady performance over the past year has also made it attractive to investors.
"This time last year we were sitting at around 740 and the index is now at 940, so we've had a very strong return in the last year," Forrest said.
"Basically REITs have really gone onwards and upwards since then," she said.
