Summary: Property has performed better than shares over the last year but many factors will support both over the next year. Equities are very cheap compared to property as sentiment on Australian stocks is terrible. Shares are more volatile, although that creates investment opportunities that aren’t often available in the property market.
Key take-out: The scope for a double digit rally is greater for shares than property over the next 12 months. The property boom will live on but there is a limit to how long gains in Sydney and Melbourne can keep pushing at double digit rates.