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Australian (ASX) Real Estate Sector Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies67
- 7D2.2%
- 3M-1.7%
- 1Y-17.9%
- YTD-22.0%
Over the last 7 days, the Real Estate industry has risen 2.2%, driven by gains from Goodman Group of 2.2%. In the same time, Sunland Group was down 33%. In contrast, the industry has lost 18% in the last 12 months. Looking forward, earnings are forecast to decline by 3.7% per year.
Sector Valuation and Performance
Has the Australian Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$156.9b | AU$35.2b | AU$19.0b | 7.9x | 8.3x | 4.5x |
| Wed, 26 Oct 2022 | AU$144.3b | AU$35.2b | AU$19.0b | 7.1x | 7.6x | 4.1x |
| Fri, 23 Sep 2022 | AU$148.7b | AU$35.2b | AU$19.0b | 7.5x | 7.8x | 4.2x |
| Sun, 21 Aug 2022 | AU$162.7b | AU$35.1b | AU$18.3b | 7.9x | 8.9x | 4.6x |
| Tue, 19 Jul 2022 | AU$156.5b | AU$34.7b | AU$18.8b | 8.7x | 8.3x | 4.5x |
| Thu, 16 Jun 2022 | AU$144.9b | AU$34.7b | AU$18.8b | 8.7x | 7.7x | 4.2x |
| Sat, 14 May 2022 | AU$166.0b | AU$34.7b | AU$18.8b | 9.2x | 8.8x | 4.8x |
| Mon, 11 Apr 2022 | AU$184.9b | AU$34.9b | AU$19.4b | 9.1x | 9.5x | 5.3x |
| Wed, 09 Mar 2022 | AU$176.7b | AU$34.9b | AU$19.6b | 8.9x | 9x | 5.1x |
| Fri, 04 Feb 2022 | AU$181.8b | AU$32.2b | AU$13.2b | 10.7x | 13.8x | 5.6x |
| Sun, 02 Jan 2022 | AU$197.2b | AU$32.1b | AU$13.0b | 10.6x | 15.2x | 6.1x |
| Tue, 30 Nov 2021 | AU$187.6b | AU$32.1b | AU$13.0b | 10.3x | 14.5x | 5.8x |
| Thu, 28 Oct 2021 | AU$186.0b | AU$32.2b | AU$12.9b | 10.5x | 14.4x | 5.8x |
| Sat, 25 Sep 2021 | AU$182.9b | AU$32.2b | AU$12.6b | 11.8x | 14.5x | 5.7x |
| Mon, 23 Aug 2021 | AU$179.4b | AU$32.2b | AU$12.6b | 12.6x | 14.2x | 5.6x |
| Sat, 10 Jul 2021 | AU$168.8b | AU$32.0b | AU$12.7b | 12.9x | 13.3x | 5.3x |
| Fri, 02 Apr 2021 | AU$155.0b | AU$31.1b | AU$5.3b | 15.9x | 29.4x | 5x |
| Mon, 04 Jan 2021 | AU$156.6b | AU$30.3b | -AU$2,099,010,667.37 | 17.6x | -74.6x | 5.2x |
| Thu, 08 Oct 2020 | AU$138.6b | AU$31.3b | -AU$1,164,003,415.15 | 17.7x | -119.1x | 4.4x |
| Wed, 01 Jul 2020 | AU$129.3b | AU$32.3b | -AU$229,936,193.64 | 20.7x | -562.5x | 4x |
| Sat, 04 Apr 2020 | AU$104.9b | AU$34.5b | AU$5.0b | 14.7x | 20.8x | 3x |
| Tue, 07 Jan 2020 | AU$158.8b | AU$36.8b | AU$10.4b | 15.6x | 15.3x | 4.3x |
Price to Earnings Ratio
16.2x
Current Industry PE
- Investors are pessimistic on the Australian Real Estate industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.3x which is higher than its 3-year average PE of -53.6x.
- The industry is trading close to its 3-year average PS ratio of 4.8x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have grown 23% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Australian Real Estate sector?
| AU Market | 1.17% | |
| Real Estate | 2.19% | |
| REITS | 2.47% | |
| Real Estate | -0.70% | |
Industry PE
- Investors are most optimistic about the Real Estate industry, which is trading close to its 3-year average PE ratio of 39.4x.
- Analysts are expecting annual earnings growth of 27.9%, which is higher than its past year's earnings growth of 23.3% per year.
- Investors are most pessimistic about the REITS industry, which is trading below its 3-year average of 1kx.
Forecasted Growth
- Analysts are most optimistic on the Real Estate industry, expecting annual earnings growth of 28% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the REITS industry is expected to see its earnings decline by 6.2% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| GMG Goodman Group | AU$18.77 | 2.2% +AU$776.5m | -23.6% | PB2.2x | |
| SCG Scentre Group | AU$2.97 | 3.8% +AU$570.3m | -6.0% | PB0.8x | |
| VCX Vicinity Centres | AU$2.03 | 6.0% +AU$523.5m | 14.0% | PB0.8x | |
| GPT GPT Group | AU$4.45 | 4.0% +AU$325.6m | -17.0% | PB0.7x | |
| MGR Mirvac Group | AU$2.20 | 3.8% +AU$315.7m | -24.1% | PB0.8x |