Recently, two major real estate consultancies, in their recently published research reports, have forecasted that the Singapore property market may see further correction in 2017, and the consultancies believe that this may prompt the government to scale back its property cooling measures.
One feature of Asian cities is its density. Over the same land area, typically an Asian city will serve a larger population than cities in North America or Europe. A major reason for this development is the favourable precedence created by Japan and the Asian Tigers.
Admiral Investment has recently published its 2017 Outlook, and our top call was Australian REITs and rental real estate. We base this view on two themes that we expect to gradually play out in 2017.
The surprise victory of Donald Trump has led many investors to rethink their investment outlook. Trump’s victory was underwritten by voters who have been proportionally affected by the side-effects of global trade.
In recent years, we have observed the rise of leveraged portfolios, especially those with an income-yielding component. Responding to investor queries, we have recently analysed the investment merits of a geared portfolio based on Asia Pacific REITs. We created a base portfolio, using a 50:50 split between Asia Pacific REITs and Asia Corporate Bonds.
Since July 2016, our firm has noticed that internationally-minded investors have taken a renewed interests in Asian real estate. Recent data from both Hong Kong and Singapore real estate developers suggest that home sales are picking up.
One sign of a Real Estate Investment Trust (REIT) market reaching maturity is the ability of existing REITs in raising significant capital for new acquisitions. Using this metric, the recent deal completed by Mapletree Commercial Trust - where it raised $1 billion for acquisitions - certainly adds to the track record of the Singapore bourse.
In the last two decades, computers and the Internet have transformed the economy around the world, and quite naturally, company fortune has risen and fallen with each generation of technology.
Successful REITs may seek additional opportunities abroad to broaden their portfolio and to provide additional growth for their investors. In some situations, investing abroad may benefit higher income yield and, if acquired properly, additional risk-adjusted returns.
Hotel investments have been considered to be riskier than other real estate related investments over the past decade. However, several factors and how hotel owners are diversifying by investing and capital management, hotel REITs might be more attractive for investors now.