Asian REITs Benefiting From Austerity Measures

A number of Real Estate Investment Trusts (REITs) are benefiting from the recent austerity measures put in place by various governments.

In particular, Asian property securities have benefited from the measures, with investors finding new confidence in the funds....

A number of Real Estate Investment Trusts (REITs) are benefiting from the recent austerity measures put in place by various governments.

In particular, Asian property securities have benefited from the measures, with investors finding new confidence in the funds.

Andrew Nicholas, manager of the First State Global Property Securities Fund, explained that many investors are now seeking "yield over growth by favouring defensive sectors".

He added that REITs often perform strongly in the current climate and that he is particularly confident about the outlook for Asia.

Mr Nicholas said that the outlook for the Asian market is driven mainly by the fact that "China is in the process of tightening conditions in the residential property market and whilst this is impacting negatively on demand, it is unlikely to lead to a sustained underperformance of the sector relative to the wider economy".

Meanwhile, the office market in the country has recovered strongly over the past year.

This performance is highly dependent on the health of the financial services sector and hiring expectations for the country's investment banks currently stand at a record high in contrast with Europe and the US.ADNFCR-3415-ID-800052785-ADNFCR

- Tuesday 07 September 2010

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.