GPR/APREA Indices June 2020 01 July 2020
- Listed real estate indexed returns in the Asia Pacific crept up in June, as investors bought into a fledgling economic recovery on the back of easing lockdowns across the region. Real estate equities and REITs, with exposure to China, including those listed in Hong Kong and Mainland China are enjoying a resurgence as investor interest increased on bargain opportunities.
- Hong Kong listed real estate equities and REITs rebounded 12.2% and 7.8%, respectively, in June, despite the start of a newly imposed national security law. Investors are looking past the debated legislation, opting to focus on renewed stability in the economy as social-distancing rules were relaxed.
- Listed Real Estate/REIT indices continued to underperform the broader markets, and were down 18% and 21%, respectively from their peaks. However, with a majority of lockdowns easing across the economies, returns could once again outperform as businesses resume amid a slew of rate cuts globally.
