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Australia's Property Stocks Are Ignoring the Housing Slump

  • S&P/ASX 200 A-REIT Index gained 13 percent this year
  • Top three stocks don’t meet definition of a REIT: APN Property
Residential buildings and houses stand in the Darling Point area as skyscrapers in the central business district stand in the background in Sydney, Australia.
Photographer: Brendon Thorne/Bloomberg

Australian property stocks are proving largely immune to the worst housing slump in a generation, rallying to the highest in almost three years.

Diversified revenue streams, the demand for offices in a growing economy and low bond yields have propelled the S&P/ASX 200 A-REIT Index up 13 percent this year, compared with the nation’s benchmark index, which has climbed 9.2 percent. Fifteen of the 18 stocks on the gauge are in the green, with Charter Hall Group and Goodman Group leading the rally.