Some ASX 200 real estate companies have been struggling through recent COVID-19 restrictions and lockdowns, and this is being reflected in their share prices.
The S&P/ASX 200 Real Estate Index (ASX: XRE) has fallen 1.45% over the last 30 days. However, real estate shares focused on commercial and retail space have seen share price drops of around 8%.
Restrictions faced by numerous parts of Australia over the past month have likely spurred the ASX 200 real estate giants’ falls. Let’s take a look.
30 days of lockdowns
Most of Australia’s states and territories have faced restrictions or lockdowns over the past month, and it’s weighing on some ASX 200 real estate shares.
Right now, the New South Wales Government is doubling down on COVID-19 restrictions in Sydney. The city and surrounding regions have been in a soft lockdown for the past 3 weeks in an attempt to curb the spread of the delta variant.
From today, non-essential retail and construction in greater Sydney have been halted. Residents of some suburbs have also been banned from leaving their immediate area for work.
Meanwhile, Melbourne has been in lockdown since Thursday after removalists from Sydney spurred an outbreak of the delta variant in the city.
And it’s not just the lockdown of Australia’s biggest cities putting pressure on some ASX 200 real estate shares.
Much of Queensland, Darwin, Alice Springs, and Perth have each entered and exited lockdowns in the last month.
The ASX 200 real estate shares hit hard
The Vicinity Centres (ASX: VCX) share price has dropped 8.46% over the past month, sitting at $1.52 at the time of writing. The ASX 200 company is a real estate investment trust (REIT). It primarily focuses on owning and managing Australian shopping centres.
Fellow ASX 200 REIT Scentre Group (ASX: SCG) has seen its share price fall 8.39% to currently trade at $2.62. Scentre is the owner and operator of Westfield shopping centres.
Finally, the Stockland Corporation Ltd (ASX: SGP) share price has plunged 7.38% since this time last month. Shares in the company are now going for $4.39. The ASX 200 company derives the majority of its income from commercial property, most of which is retail property.