HK-REITs only third largest in Asian market

Market cap of HK-REITs is nearly 50% lower than Singapore REITs.

According to a new report released today by the Asia Pacific Real Estate Association (APREA), and authored by Professor Graeme Newell, University of Western Sydney, the S-REIT market continues to attract investors, providing one of the highest average yields and yield premiums compared with other developed Asian markets such as Japan and Hong Kong. In addition, the average S-REIT yield (6.39%) shows far better returns than the mature markets such as Australia (4.38%) and US (3.4%).

The study shows that growth in the dynamic Asian real estate markets will continue to see Asian REITs expand their significance as key players in the Asian real estate markets. Investors who adopt a pan-Asia REIT strategy will benefit from an effective listed real estate investment strategy, to achieve diversification and access to high quality commercial real estate portfolios in the various Asian REIT markets.