Listed vs Unlisted Property Funds: A Guide for Wholesale Investors Weighing Their Options

If you have started researching property as an asset class, you may have found two ways to invest. You can choose listed property funds that trade on the ASX. You can also choose unlisted property funds that operate outside the share market.

But their structure, pricing, and management can shape different investment experiences. Both give investors real estate exposure without buying a building outright. But their structure, pricing, and management can lead to different investment results.

Both give investors real estate exposure without buying a building.

Still, their structure, pricing, and management can create different investment experiences. For wholesale investors weighing options, this distinction is key when building a property allocation.

This guide builds on our companion piece, Property Funds in Australia: A Guide for Wholesale Investors. It focuses on how listed and unlisted structures compare. This helps you assess which approach suits your objectives, or if a mix works best.

What is a Listed Property Fund?

In Australia, it is called an A-REIT (Australian Real Estate Investment Trust). It trades on the ASX like an ordinary share. Investors buy and sell units through a broker, and the market sets the unit price all day during trading.

Because A-REITs are listed, investors can typically trade them daily and view a transparent, publicly visible price. However, more than the value of the underlying property influences that price. Broader share market mood, interest rate views, and investor flows all play a role. This means a listed property fund’s unit price can move on its own. It may not match how well the buildings it owns perform.

What is an Unlisted Property Fund?

An unlisted property fund is a pooled investment. It raises capital from investors and invests in property assets or related projects. Its units are not listed on a public exchange. Instead of trading on the ASX, investors usually apply directly to a property fund manager. They do this through a formal offer document. For wholesale offers, this is most often an Information Memorandum.

The unlisted property fund sector is significant enough in Australia that ASIC maintains specific guidance for it.

Because investors do not trade units on an exchange, an unlisted property fund usually uses periodic, independent valuations. It does not rely on daily market pricing for its value. This can mean a smoother reported value over time. It typically comes with reduced liquidity. Investors cannot sell their holding on-market whenever they choose.

Ready to see how this applies to a real portfolio? View our current funds

A dual-line chart comparing the high volatility of listed A-REITs against the stable growth trajectory of unlisted direct property. | Source: A-REITs vs. Unlisted Direct Property: Return Dynamics, Fresh Economic Thinking

Listed Vs. Unlisted Property Funds: The Key Differences

While both structures ultimately give investors exposure to property, the practical experience of holding each one can differ substantially. Here is how they generally compare:

Feature	Listed Property Funds	Unlisted Property Funds
Liquidity	Tradeable on the ASX during any trading day	Generally illiquid; capital tied up until redemption window or project completion
Pricing & Valuation	Priced continuously by the market	Based on periodic, independent valuations
Volatility	More volatile short-term, reflecting share market sentiment	Less directly tied to daily trading behaviour
Access & Minimums	Accessible in small parcels through any broker	Often higher minimums with specific eligibility requirements
Investor Base & Disclosure	Open to retail and wholesale investors	Frequently wholesale-only with fewer retail-style disclosure requirements

Wholesale eligibility for unlisted offers is generally assessed against the sophistication or asset thresholds set out in sections 708 and 761G of the Corporations Act 2001 (Cth).

Why Wholesale Investors Consider Unlisted Property Funds

For wholesale investors, unlisted property funds often offer access to opportunities not available on the ASX. These include specific development projects, land subdivisions, and value-add strategies. A dedicated property fund manager typically manages these strategies. Because these structures are not repriced daily, some investors feel unlisted vehicles can follow a strategy. They can do so over the intended timeframe, without the noise of short-term market sentiment.

There is also a portfolio construction argument. An investor who already holds listed A-REITs may have some link to broader equity markets. They may invest in unlisted property funds to diversify this exposure. This can shift their focus to assets driven more by the real estate itself.

Key Risks Investors Should Understand

Both listed and unlisted property funds carry risk, and neither structure removes the possibility of loss. Market risk and price volatility expose listed property funds and can, at times, diverge from the performance of the underlying assets.

Unlisted property funds involve a distinct set of risks. These include liquidity risk, because your capital may not be available when you want it. They also include valuation risk, because unit pricing depends on scheduled independent valuations. Unit pricing does not rely on ongoing market trading. There is also gearing risk when the fund uses borrowing. Some funds also carry project or development risk. This applies when a fund is linked to a specific subdivision or build timetable.

No structure is inherently safer than the other; each carries a different risk profile suited to different investor circumstances. A well-structured managed property fund, whether listed or unlisted, will disclose these risks clearly in its offer documents. Investors should review the relevant Information Memorandum or Product Disclosure Statement in full and seek independent financial advice before making any investment decision.

Speak With Our Investment Team

Whether you are weighing up listed and unlisted structures for the first time, or you already hold A-REITs and are considering how an unlisted property fund might complement that exposure, our investment team is available to walk you through our current opportunities and how they are structured.

Explore our Our Funds page for current opportunities, browse the full All Funds list, or Contact Us directly to arrange a time to discuss your objectives.

Speak with the FivePearls investment team →

Frequently Asked Questions

What are unlisted property funds?

Unlisted property funds are not traded on public stock exchanges and may be accessed directly through a fund manager. Because they do not fluctuate with daily market sentiment, they are generally less volatile than listed funds, but they carry different liquidity profiles and specific project risks.

Sources

Required standard disclaimer

This article is general information only and has been prepared for wholesale investors. It does not take into account your objectives, financial situation or needs and should not be considered personal financial advice. Investments involve risk, including possible loss of capital. Past performance is not a reliable indicator of future performance. Investors should review the relevant offer documents and seek independent advice before making any investment decision.

FivePearls Property Funds Pty Ltd is the Fund Manager and a Corporate Authorised Representative No. 001321331 of FivePearls Funds Management Pty Ltd AFSL No. 700140. Investments can only be made by wholesale investors through an official application form included in the Supplementary Information Memorandum.

FivePearls Property Funds (ACN 640 328 696) is owned and operated by FivePearls Funds Management Pty Ltd (ACN 672 938 582). The information provided on this page is of a general nature and should not be considered as financial, investment, legal or tax advice. You should always seek independent professional advice before considering any of the products and information contained on this page

This article is general information only and has been prepared for wholesale investors. It does not take into account your objectives, financial situation or needs and should not be considered personal financial advice. Investments involve risk, including possible loss of capital. Past performance is not a reliable indicator of future performance. Investors should review the relevant offer documents and seek independent advice before making any investment decision.

References

1. Australian Bureau of Statistics (2024). Residential Land Development, Mar 2024. Canberra: ABS.

2. Housing Industry Association (2024). Residential Land Report. Sydney: HIA.

3. CoreLogic (2024). Australian Housing Market Update. Sydney: CoreLogic.

4. National Housing Accord (2024). National Housing Accord: 1.2 Million Homes. Canberra: Commonwealth of Australia.

5. Urban Development Institute of Australia (2024). State of the Land 2024. Sydney: UDIA.

6. Reserve Bank of Australia (2024). Housing Market Update. Sydney: RBA.

7. Australian Property Institute (2024). Property Valuation and Risk. Canberra: API.

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