Asia property stocks still a strong bet-trade group
|
 |
By isabel rojo tiong in General Published: Thursday, 03 April 08 - 04:24 PM (GMT +08:00) Last Updated: Thursday, 03 April 08 - 05:15 PM (GMT +08:00) |
| ||
SEOUL, April 2 (Reuters) - Asia's listed property sector is still in a broad-based recovery and, although returns are likely to slow from 2007, solid results based on strong asset values are likely this year, property investors at a regional forum said on Wednesday.
China continued to get the votes of listed property investors due to its strong economic growth outlook, continued population shift to large cities and growing need for residential and commercial property.
Record U.S. home foreclosures on the back of a shakedown in the subprime mortgage market have led investors away from listed real estate investment trusts, or REITs, in the past several months, pushing their prices sometimes below net asset value.
But fundamentals remain strong with demand and supply balanced, members of the Asian Public Real Estate Association (APREA), which represents the region's listed real estate sector, told Reuters at the organisation's annual forum, held in Seoul.
"Compared with 6 to 9 months ago, the value of REITs is less," said Graham Sugden, CEO of AMP Capital Investors REIT Management. "But underneath that, the assets are fundamentally sound."
"Returns were very strong in 2007," said Chris Reilly of Henderson Global Investors based in Singapore. "That is bound to moderate this year, but asset value is improving."
Alfred Liu, an executive at UBS Global Asset Management said there were bargains, patricularly in Japan.
"In the Japanese situation, domestic players or institutions will come back because it's really undervalued," he said.
"The Asian mentality is that people won't part with their assets. They won't walk away from their houses." more...
Have your say on this article:
<-- Back
