Asia Pacific non-listed real estate to attract more instos in 2021
Despite COVID-19 and the turbulence of 2020, the majority of institutional investors from Europe and the US have said they are either planning to stick firm to their investment plans for non-listed real estate assets across the Asia Pacific region in the coming year or increase their exposure.
More profoundly, 22% of investors said the crisis urged them to increase their planned investments in the region, against only 16% and 13% of investors, who were planning to increase their exposure to American and European real estate markets in the coming months, respectively, the joint study by Asian and European Associations for non-listed real estate vehicles (ANREV and INREV) and the Pension Real Estate Association (PREA) in the US found.
Further to that, the proportion of investors who expected to increase their allocation across the region over the next two years stood at 72% which was higher than the proportion expecting an increase in allocation to any other regions.
At the same time, non-listed real estate funds remained the preferred investment route to Asia Pacific markets, with 65% of investors indicating their willingness to increase their allocation through this route, Amélie Delaunay, director of research and professional standards at ANREV, said.
Delaunay, who reminded that real estate investing was “for the long term”, said that this preference for non-listed real estate funds might have been reinforced by the travel restrictions in place due to the COVID-19 pandemic.
Source ANREV
According to FE Analytics, the Australian direct property sector returned 1.72% over the year to 30 November, 2020 while at the same time the Australian listed property sector showed a loss of 7.5%.
The best-performing fund across the Australian direct property sector was DomaCom Lot 15 Averys Lane Clifton Leigh ATR which returned 56.09% over the one-year period. Looking at longer three-year period to the end of November, 2020, the best-performing fund was DomaCom Doyles Lower Coleraine Rd Muntham VIC 3155 ATR which returned 18.1%.
Performance of the Australian direct property sector against the Australian listed property sector over one year to 30 November 2020
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