RAIZ INVEST: Australia’s housing crisis lifts trading for major developer Mirvac

One of Australia’s largest property groups saw a significant boost in trading this week as the country’s housing market came into focus.

Mirvac Group ($MGR) was the standout performer over the past seven days, surging into the Raiz Top 10 with a 419 per cent increase in shares traded. Just a month ago, the group barely managed 200 trades, but it has now surpassed 2,000.

Overall, there was a 6.7 per cent increase in shares traded across the Top 10, with 44,614 shares changing hands. All but three stocks saw an uptick, pushing the entire Top 10 higher.

Mirvac is attracting investor attention following government announcements this week, with Prime Minister Anthony Albanese working to advance his housing agenda. One key bill under consideration is the Build-to-Rent legislation, which incentivises developers to construct rental housing by offering tax concessions.

Mirvac is well-positioned to benefit, having recently opened its third Build-to-Rent complex in Melbourne. The company has committed $1.8 billion to this initiative, with plans to build around 5,000 apartments by 2030. If the government’s bill passes, Mirvac stands to capitalise significantly, promising a potential windfall for investors.

Santos ($STO) was another top performer this week, with a 310 per cent increase in shares traded over the past seven days. The gas sector has been in the spotlight, with Santos executives speaking out about the nation’s looming gas shortfall, asserting that there are no excuses for supply issues in Australia.

Authorities have warned of potential gas shortages, which could drive up gas bills at a time when the government is introducing measures to mitigate costs. In response, Labor has introduced a Future Gas Strategy, underscoring its commitment to gas as a critical resource. Santos has several major projects on the horizon which will facilitate Australia’s gas supply, particularly its Barossa and Gladstone projects. This allows it to position itself to benefit from the government’s gas focus and prepare for a solid long-term future in the domestic market.

On the downside, Qantas ($QAN) saw a 37 per cent drop in trading activity this week. This decline is likely a return to regular trading levels of around 2,000 trades, following an 8 per cent boost last week. This week, the airline announced plans to increase flights to Japan, a popular holiday destination for Australians.

AMP ($AMP) also experienced a 12 per cent decline in trading, but it remains well ahead of its competitors. It is still trading 194 per cent higher than the second most-traded stock, Pilbara Metals ($PLS), so any declines should be viewed in the context of its strong overall position.

While individual stocks were up for the week, the ETF market saw an 18 per cent drop in units traded. Notably, both sustainable ETFs—Betashares Global Sustainability Leaders ETF ($ETHI) and Russell Investments Australian Responsible Investments ETF ($RARI)—experienced declines of over 30 per cent.

These two ETFs tend to fluctuate significantly. For instance, ETHI saw over 136,000 units traded last week, but just a month ago, it was hovering around 17,000 units. ETFs, even more than stocks, are about time in the market rather than timing the market. One investment strategy commonly associated with ETFs is Dollar Cost Averaging (DCA).

This strategy involves regularly investing a fixed amount of money into a security over a set period, regardless of price. So while the ETF market experiences periodic ups and downs, some fluctuations may be attributed to the timing of investors’ strategies.

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Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815). PDS and TMD are available on the Raiz Invest website and App. You should read and consider those documents before deciding whether, or not, to acquire and continue to hold interests in the product.