While we can't all build an investment property portfolio, real estate stocks can give exposure to this sector of the Australian market.
Two of the best performing in this sector over the last year are Charter Hall Group (ASX: CHC) and REA Group Ltd (ASX: REA).
Let's look at what sparked the hot last 12 months, and how much investors would have gained in returns from these real estate stocks.
Charter Hall Group (ASX: CHC)
Charter Hall Group is an Australian real estate investment and funds management company.
It engages in managing and investing in office, retail, and industrial properties.
It was the best performing real estate stock in FY25.
Over the last year this ASX 200 real estate investment trust (REIT) share price has risen 73.05%.
For context, the S&P/ASX 200 Real Estate Index (ASX: XPJ) rose roughly 10% in that same period.
A convergence of stronger earnings, more positive property market dynamics, investor capital inflows, and sector-leading positioning in industrial and net-lease assets have driven the share price appreciation over the past year.
At the time of writing, Charter Hall Group's share price is trading at $19.07 compared to around $11 a year ago.
If an investor had bought $10,000 worth of shares a year ago, that initial purchase would now be worth a tidy $17,305 today.
This is before factoring in dividends or reinvested earnings.
REA Group Ltd (ASX: REA)
Another real estate stock winner in the past 12 months was REA Group Ltd.
A name many Aussies will be familiar with, REA is an online real estate advertising company that provides property and property-related services on websites and mobile apps across Australia, Asia, and North America.
REA Group operates Australia's leading residential and commercial property websites –realestate.com.au and realcommercial.com.au – along with Flatmates.com.au.
Its share price has risen 21.06% since this time last year.
Its share price appreciation reflects a powerful mix of rising revenues, margin resilience, housing-market growth, market dominance, and strategic catalyst events—all reinforcing investor confidence in its long-term growth trajectory.
At the time of writing these real estate stocks are trading at $231.83.
They reached a 12 month high back in February of roughly $275 a share.
An investor who bought $10,000 in REA Group shares a year ago would now be looking at healthy growth.
Today it would be worth $12,106.
