ASX Real Estate Stocks Are Finally Out of the Doldrums: But These 6 Are Standing Above The Rest

FY25 was finally the year ASX Real Estate Stocks broke out of their post-COVID slump, netting an average return of 17%. Of course, there were losers too, but they were in the minority. Of 66 ASX real estate stocks, 38 were winners, 5 were flat, and there were 23 ‘losers’.

But the sector has officially emerged from a difficult few years where values crashed due to concerns about how the pandemic and the post-pandemic world would impact each company’s sub-sector.

Then, just as the world emerged from lockdowns, interest rates rose at the fastest pace in decades which put a dent in many companies in a number of ways. These included far higher interest repayment on their debt, higher construction costs on their developments as well as negative investor sentiment to them, both due to the preceding two factors and investors bearing the brunt of higher interest rates.

But FY25 was the year things turned for the better with rate cuts beginning. Let’s look at

The Best 6 ASX Real Estate Stocks in FY25

Aspen (ASX:APZ)

Aspen has more than doubled in the last 12 months. It is a provider of affordable accommodation assets – properties for those with an income of less than $90,000. It has a portfolio of assets over $600m with over 5,000 dwellings/sites and in most Australian states. These are both holiday properties and also permanent living facilities, generally in areas working age people would holiday at, but retirees would retire to.

Aspen’s last trading update, unaudited results for the 10 months to the end of April 2025, showed a 13% growth in Net Rental Income to $35.1m and a 31% jump in underlying operating earnings to $27.5m. The company confirmed it was on track to meet its guidance, and was able to successfully raise $70m in fresh equity capital and renegotiate its debt facility.

Aims Property Securities Fund (ASX:APW)

Aims won’t win any prize for its website design, as it is not 2005 anymore. Neither will it for distributions as it has not paid it for a few years – opting to focus on growth. But the funds management business (dual-listed in Australia and Singapore) has a diversified mix of assets including property, property securities and mortgage assets amounting to over $1.5bn.

Charter Hall (ASX:CHC)

When we mention Charter Hall, we are talking about this company’s primary listed entity and not any of its individual REITs. It is one of those companies that when its CEO speaks, people in the industry and the economy listen, because it has over $80bn in Funds Under Management.

CHC has grown its post-tax earnings by a 11.4% CAGR in the last decade and benefited through diversification in operating funds, building properties and investing in them. And it is exposed to a wide range of sectors, 31% to industrials, 29% offices, 15% convenience retail, 4% social infrastructure and the balance ‘listed equities’ meaning its REITs.

Cedar Woods (ASX:CWP)

Cedar Woods is a development company focused on residential properties – master communities of houses and apartments. The construction sector isn’t in the best shape right now, but Cedar Woods is in a great space to be given the housing shortage and that governments are coming to terms with this and adjusting policy settings.

In its most recent update, the company told investors to expect 15% profit growth in FY25 and that over $700m of presales were made so far in FY25. Further profit growth is expected in FY26.

ServCorp (ASX:SRV)

This is a peculiar company, being a serviced office specialist and owned and operated by the same person who founded the company in 1978 – Alfred Moufarrige. It claims to be the world’s leading provider with 135 floors in 41 cities across 20 countries.

After plunging during the pandemic when people worked from home, the company is adjusting to a ‘new normal’ of ‘flexible working’ where companies may turn to serviced offices as a trade-off between offering flexibility and having some collaboration, and paying a price accordingly. In its most recent results, for 1H25, Servcorp reported a statutory post-tax profit up 76% on 12 months ago and it told investors to expect a pre-tax profit for the full year of $61-65m.

US Masters Residential Property (ASX:URF)

You may have noticed a couple of winners on this list are exposed to residential properties. So it is with URF too, but URF is exposed to US residential property, most particularly New York and New Jersey. While macroeconomic conditions are volatile under Trump 2.0, the company has told investors that there is strong appetite for property there.

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