REIT markets post double digit positive returns

Attributed to the REIT model’s resiliency, real estate investment trusts are what's giving the property investment sector its way out of the economic downturn.

According to an Ernst & Young report entitled Against all odds: Ernst & Young’s Global REIT Report 2010, Asian REITs in particular significantly outperformed other regions. "The turnaround in the global REIT market in 2009 is best shown by the fact that all REIT markets – except Japan – saw double digit positive returns for the year," said Liew Choon Wai, Assurance Partner and Singapore Real Estate Leader, Ernst & Young LLP.

Liew added, "Asian REITs performed well as a region because the Asian economies have generally been more resilient to the financial crisis, underpinned to some extent by China's economic performance and favorable long-term growth outlook. The performance of each country's REIT market appears to reflect the broader economic sentiment."

Particularly for Singapore, “The economy was seen as particularly vulnerable during the financial meltdown, and it was not surprising that we saw a plunge in REIT returns in 2008 to early 2009, which has subsequently rebounded strongly since March as financial markets stabilise," commented the Singapore Real Estate Leader.

REITs gave investors an opportunity to quickly adjust their exposure to real estate by selling REIT stocks and are now providing investors with a way to capture the market rebound by adding real estate stocks back into their portfolios, according to the report.

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