December ends a mixed 2014 for Asia Pacific property stocks
December 2014 continued a mixed pattern of performance witnessed throughout 2014 as the broader markets struggle to reach consensus on the true direction of global and regional growth while still digesting the impact of government policy moves and election results. After two months of positive returns, both global and Asia Pacific real estate stocks turned negative in December, though REIT-specific companies did manage to post reasonable positive returns as investors once again chased yield on fears of a further global slowdown. For the month, global and Asia Pacific real estate stocks returned –2.3 percent and –0.7 percent, respectively, while global and Asia Pacific REITs returned 0.4 percent and 2.2 percent, respectively.
The easy (and expected) re-election of Prime Minster Shinzo Abe in December provided support for Japanese real estate stocks, particularly for the J-REIT sector, as investors expected further stimulus measures — and hence asset purchases by the Bank