This article is from the Australian Property Journal archive
THE AUSTRALIAN Stock Exchange is looking to develop the first residential property index derivates.
The index will use the RP Data-Rismark Hedonic Indices for measuring house price changes over time.
It is proposed that these derivatives will be launched and traded on the ASX.
Rismark International’s managing director Christopher Joye said a residential property derivatives market has the potential to allow individuals and institutions to cost-effectively access index-linked exposures to the $3.2 trillion residential property asset-class.
“Previously the high transaction costs associated with residential property investment have made accessing this asset-class on a diversified basis difficult,” he added.
As property derivates markets have begun to boom all around the world, this agreement with the ASX was a complement to the achievements of the group since its inception in 1991.
In the United Kingdom, the world’s largest property derivatives market, there are currently over GBP7 billion worth of over-the-counter commercial and residential property derivatives outstanding.
Australian Property Journal
