Real estate derivative contracts

After years of development, the launch of a new residential property derivatives market based on the RP Data – Rismark Indices is imminent.

The ASX’s listed property investment contracts will allow investors to hedge their risk and invest on property price movements. It will give investors a low cost method of allocating capital to the residential property sector, and diversify their investment over major Australian cities.

We can see many interesting uses for the new market, including home owners wanting to insure against property price falls, builders wanting to lock in current property prices for a specified time, or renters who can not afford to buy now protecting themselves against future property price increases.

We await a launch date, and will keep readers updated with regular postings on CurtiseCall.