Up to $10bn has been wiped from the value of unlisted wholesale property trust assets in the year to June.

Analysts predict about $3bn worth of real estate holdings will need to be sold by these funds in the coming months.

'We expect another six to 12 months of declining asset values despite the listed markets having reverted to positive performance,' said Jennifer Johnstone-Kaiser, Mercer's head of Real Estate Asia Pacific.

The value declines meant some wholesale funds would be compelled to follow the lead of the property companies listed on the Australian Securities Exchange and raise capital, mainly by issuing bonds, or through asset sales to keep their bankers happy, she said.

The Australian