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Date : 22/01/2021

Top 5 Real Estate Stocks ASX to Look Out For in 2022

Real Estate Shares ASX

The Real Estate market bounced back towards the end of 2020. Real Estate stocks are companies that operate in the real estate market.

The ASX 200 Real Estate market index took a beating due to the pandemic. However, come November, with the emergence of a vaccine, the sector has roared back. There are several factors that affect the real estate market. The market is especially sensitive to the state of the broader economy, interest rates, income, etc. These are factors that change the demand curve in the real estate sector. The prices of real estate are also affected by the available supply in the market.

Our economy was put in a recession due to the pandemic, and while the recovery has started, the road is long. The outlook for the real estate market is very similar. We can expect the sector to deliver returns as the economy recovers in 2021, but do not expect it to be a high growth sector. There are several sectors that’ll benefit from the Covid-19 vaccine in addition to the real estate sector in 2021. Our top 5 ASX shares to look out for in 2021 contains stocks from all of these sectors.

Top 5 Real Estate Stocks ASX to Look Out For in 2022

Mirvac Group (ASX: MGR)

Mirvac is an Australian real-estate developer that operates in the Residential, Retail, Office & Industrial segments. Mirvac operates across all states except Northern Territory with a strategy that is aligned towards reimagining urban life. The firm has 29 properties in its office portfolio that have a 98.3% occupancy rate. The weighted average of all the properties lease expiry is 6.4 years, and they were valued at $7.3 billion at the end of FY 2020. Ten properties in the Industrial portfolio that have a total valuation of $944 million in FY2020. Mirvac operates 16 residential properties that have a combined worth of $3.1 billion.

27,361 lots in the pipeline as of FY2020. The gross margins have reduced to 24% and Mirvac maintains a return of 13.8% on invested capital. Mirvac has rebounded fairly well since the market crash in March, has a dividend yield of over 4%, and is a property stock to consider making a part of long-term portfolios.

Goodman Group (ASX: GMG)

Goodman is the largest real estate company on the ASX. They demand a market cap of over $32 billion. Goodman owns, develops and manages industrial and commercial real estate. However, their main concentration has been the industrial segment. They operate in over 17 countries and have $51.7 billion in assets under management. Their portfolio consists of over 369 properties.

Goodman shares have bounced back very well since the pandemic crash. FY2020 reports showed that the company earned over a billion dollars in operating profit. They are focussed on growth and continue to invest for the same. They have an extremely high presence in Australia, New Zealand, and other parts of Asia. The shares trade 11.5% off its 52-week high that was posted November. Goodman is a top real estate stock to have on any portfolio.

Charter Hall Group (ASX: CHC)

Charter Hall has been one of the best real estate stocks on the ASX. Since the crash in March 2020, Charter Hall has surpassed the highs it used to trade at prior to the pandemic. Charter Hall Group operates through its three segments – Property investments, Development investments and Property funds management.

Charter Hall has $45 billion in Funds Under Management. They manage over 1300 properties that span across office, industrial, logistics, retail, and social infrastructure. Charter Hall is positioned well for growth with a development pipeline that is worth $6.8 billion.

Post November 2020, it has been fantastic going for real estate stock on the ASX. The potential arrival of a vaccine brought in a lot of investor interest back into real estate stocks. Charter Hall shares trade 8.5% below the 52-week high that it posted in November. With a dividend yield of 2.69% and a strong growth pipeline, Charter Hall is a fantastic blue chip real estate stock to consider adding to investor portfolios.

Ingenia Communities Group (ASX: INA)

Ingenia is a lot smaller to the other real estate stocks that we have covered in this blog. They have a market cap of $1.5 billion and pay a dividend yield of 2.07%.

Ingenia Communities Group owns, manages and develops a portfolio of retirement and lifestyle communities. It operates through four segments: Gardens, Fuel, Food and Beverage Services, Lifestyle & Holidays, Corporate and Other and Lifestyle Development. The Gardens segment provides rental villages. The Settlers segment provides deferred management fee villages. The Lifestyle & Holidays segment comprises long-term and tourism within lifestyle parks. The Lifestyle Development segment comprises development and sale of manufactured homes. The Fuel, Food and Beverage Services segment consists of investment in service station operations and food & beverage activities attached to Ingenia Lifestyle and Holiday communities.

Ingenia has $51.7 billion in assets under management and 911 properties that span across ANZ, Asia, North America, and South America. Development properties that are currently under work in progress are valued at $7.3 billion. Ingenia has been a magnificent performer since the crash in March 2020, and there is still a lot of room for growth – making it one of the best ASX real estate stocks.

Rural Funds Group (ASX: RFF)

Rural Funds Group is a Canberra based Trust, that owns agricultural real estate across Australia and leases them to counterparties. Their activities and assets include leasing of almond orchards, macadamia orchards, poultry property and infrastructure, vineyards, cattle properties, cotton property, agricultural plant and equipment, cattle and water rights.

RFF generates its revenues through lease payments and appreciation of the market value of its assets over time. Hence, it is a real-estate fund manager. Its assets include diversified commodities such as orchards, cotton, vineyards, etc.

The global market for agricultural products has weathered the Covid19 storm. Commodity prices depend on supply and demand, and they have also relatively held their ground during this time. This has ensured that RFF’s portfolio of assets have performed relatively well during the crisis and hence, de-risks RFF. With over 60 well diversified properties in its portfolio, the agricultural fund manager is a good one to hold on to in your portfolio – both for dividends and growth in share price.


Real Estate seems like a very good sector to be in right now. The macro economic factors at play support it and there are more tailwinds coming its way. Shares in Value can help identify sectors that are boosted by tailwinds and help you make informed decisions when stock picking.

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