top of page
iStock-1152320811.jpg

Labassa Capital Credit Fund Update April 2025

  • Writer: Labassa Capital
    Labassa Capital
  • May 22
  • 1 min read

On a 12 month rolling basis, the Fund achieved an investor return of 10.57% p.a. net of fees as of April 2025. The Portfolio’s investments are located in NSW, Queensland and Victoria at an LVR of 68.9%. In the April month, the Fund maintained the ongoing investment portfolio from prior month. Labassa Capital’s April pipeline value was $656 million, encompassing 45 projects with an average facility value of approximately $14.6 million each.


The Reserve Bank announced a 0.25% rate cut on 20 May 2025 with more cash rate reductions anticipated for the balance of the 2025 calendar year. Labassa was approached by several investors on a widely discussed topic - will a lower interest rate drive property prices higher? We performed a review on historical data trends and have come to some key insights. Home values can be driven by a combination of factors, including the interest rate.


The three key drivers that has the most influence are:


  • Population growth: Australia’s population grew by 2.1% in 2024, which is relatively high compared to the 0.6% recorded increase in The USA and 0.5% in The UK.

  • Supply and demand: Housing supply has a continuous chronic shortage, just 72% of the required new homes to support population increase were built in 2024, and 61% in 2023. 

  • Market confidence: Economic conditions and consumer confidence play an important role.


A recent Reuters survey suggests home prices to rise c. 3.7% in 2025, with annual increases of 5.0% expected in 2026 and 2027.  



If you would like to receive a copy of the latest newsletter, please enter your details into the Insights form below.




 
 

OFFICE

Level 26, 56 Pitt Street

Sydney NSW 2000

MAILING

Level 5, 115 Pitt Street

Sydney NSW 2000

PHONE

02 9061 6600

EMAIL

Labassa FB.png
linkedin-icon-512x512-a7sf08js.png
morningstar-1-logo-black-and-white.png

Insights

Receive insights, latest news and deals from Labassa Capital.

© 2025   |  AFSL 509 609 

bottom of page