Both listed and unlisted property put investor capital into income-producing buildings. The difference is the vehicle and the investor experience it creates. Listed property is owned through exchange-traded securities; unlisted property is owned directly or through private funds. That single structural distinction drives the differences in liquidity, pricing, transparency and access set out below.
Listed versus unlisted funds at a glance
| Feature | Listed property | Unlisted (direct) property |
|---|---|---|
| Liquidity | Usually traded daily on an exchange | Multi-year lock-up; limited redemption |
| Minimum investment | Accessible — a single share, subject to broker minimums | Often large; frequently institutional |
| Pricing | Continuous, market-based | Periodic appraisal-based valuation |
| Transparency | Daily prices and listed disclosure | Infrequent valuation and reporting |
| Fees | Management fee — may include performance fees | Management plus performance/carry fees are common |
| Access | Retail and wholesale investors | Often institutional or wholesale only |
The case for listed property
Listed property offers daily liquidity, lower transaction costs, and pricing that reflects current market conditions. Because the universe is large and global, a manager can be selective — applying a quality filter and concentrating on the assets it judges most attractive rather than buying whatever single building is for sale. For performance information on Quay's funds, see the Performance page.
The case for unlisted property
Unlisted property reports lower short-term price volatility, partly because it is valued by periodic appraisal rather than continuous market pricing, which can understate how values move between valuations. It can also provide access to certain very large single assets and generally suits long-term institutional capital that does not need liquidity. These are real advantages for investors whose circumstances match them.
Quay's perspective
Quay's view is that listed securities can offer access to high-quality, rent-producing real estate with daily liquidity and transparency, often at valuations that compare favourably with private-market equivalents. The reported stability of unlisted property reflects valuation method as much as underlying value.
Frequently asked questions
- Can a portfolio hold both listed and unlisted property?
Yes. Many investors combine the two — using listed property for liquidity and diversification and unlisted property for specific long-term holdings. The appropriate mix depends on the investor's objectives and liquidity needs.
- Does listed property perform differently to direct property?
Over short periods, listed prices move with equity markets and can look more volatile. Over longer periods, returns are driven by the same underlying property cash flows, though the two can diverge depending on market conditions.
- Are there property ETFs that provide listed exposure?
Yes. Listed property exposure is available through both index property ETFs and actively managed funds, including Active ETFs quoted on the ASX.