Asian Real Estate Investment Trust Market Hit by Recession
Asian Real Estate Investment Trust market is strongly hit by the global economic recession. REIT has observed its figures sliding steeply in the last six months of 2008.
To come out of the recession Asian REITs are trying to keep hold of their renters in 2009 by concentrating on cost saving methods and saving the earnings.
Now it is expected that the property market will definitely witness much more ups and downs everywhere, as many REIT members are selling out their shares to pay out debts. Also many property investors are looking forward to the existing market situation, as they taking full benefit of the circumstances and trying to obtain good properties at very low prices.
In the current situation the market capitalization of REITs have gone down to just one third of what it was earlier. In the last six months of 2008 the market capitalization has decreased a lot and now it is just Baht 1.71 trillion. Almost all the Asian REIT markets have dropped a lot. Most of the markets have dropped to nearly 30%.
Singapore REIT was among those which are most affected by the recession. The recorded fall in Singapore REIT is approximately 54%. They are trying to gain some assistance from other REITs which are not that much affected by the recession to lend a hand in refinancing their balance dues. As the other REITs are not experiencing that much pressure of critical short term refinancing debt.
The Asian REIT has got 7 fresh listings in 2008. Among 7 only 1 listing was done in the second half of 2008.
Though, Thailand REIT had experienced a different result. About 8 funds have experienced fall of just 1-2% and the remaining six funds have witnessed a drop of approximately 20% in the same period of time.
To come out of the recession Asian REITs are trying to keep hold of their renters in 2009 by concentrating on cost saving methods and saving the earnings.
Now it is expected that the property market will definitely witness much more ups and downs everywhere, as many REIT members are selling out their shares to pay out debts. Also many property investors are looking forward to the existing market situation, as they taking full benefit of the circumstances and trying to obtain good properties at very low prices.
In the current situation the market capitalization of REITs have gone down to just one third of what it was earlier. In the last six months of 2008 the market capitalization has decreased a lot and now it is just Baht 1.71 trillion. Almost all the Asian REIT markets have dropped a lot. Most of the markets have dropped to nearly 30%.
Singapore REIT was among those which are most affected by the recession. The recorded fall in Singapore REIT is approximately 54%. They are trying to gain some assistance from other REITs which are not that much affected by the recession to lend a hand in refinancing their balance dues. As the other REITs are not experiencing that much pressure of critical short term refinancing debt.
The Asian REIT has got 7 fresh listings in 2008. Among 7 only 1 listing was done in the second half of 2008.
Though, Thailand REIT had experienced a different result. About 8 funds have experienced fall of just 1-2% and the remaining six funds have witnessed a drop of approximately 20% in the same period of time.
Labels: Asian real estate investment trust, market capitalization, property market
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