The Asian REIT Market: Asian REITs Start to Climb Back Up the Performance Ladder
The Asian REIT market rebounded significantly during the second quarter after struggling in 2008 and the first quarter of this year, demonstrating the return of some confidence to the market. However, share prices have not yet returned to the peaks seen in late 2007. With a history of less than 10 years, the Asian REIT market may be less established than its U.S. counterpart, but Asian REITs — though not without flaws — are an investment vehicle worthy of note. Even the prospect of a REIT market in China coming to fruition in the foreseeable future may give property investors additional options.
Across the board, asset classes have suffered during the global financial crisis, and global REITs have been no exception. Japan’s New City Residence Investment Corp. was the first Asian REIT to falter, filing for bankruptcy protection in October 2008. Traditionally viewed as a safer, more liquid way to invest, the Asian REIT market (primarily the dominant REIT markets