MS flags early surge in Aussie property capital flows, signals multi-year growth cycle ahead

** Analysts at Morgan Stanley see early signs of capital flows among the Australian property sector

** Flags that we might be at the beginning of a multi-year growth cycle as inflows into real estate grow, now led by offshore groups and then by traditional domestic investors

** MS says its analysis of 2024 Australian office transactions, which totalled A$8 billion ($5.04 billion) in 2024, shows opportunistic capital has reemerged in the market

** The A$8 billion in transactions compares with A$5 billion in 2023 but still is down as compared to A$15 billion per year long-term average

** Looking at capital inflows, we see that opportunistic-type investors, such as offshore and private equity groups, drove the bulk of the uplift in 2024, say analysts

** Expects Charter Hall CHC is most likely to capitalise on a capital flow bounceback, with A$66 billion of property assets under management, established inflows from wholesale and listed sources

($1 = 1.5865 Australian dollars)