AI Summarization
Singaporean investors have a strong affinity for Real Estate Investment Trusts (REITs) for several reasons:
High Dividend Yields: REITs typically offer attractive dividend yields, ranging from 4% to 8%1. These regular payouts appeal to investors seeking passive income.
Diversification into Real Estate: REITs allow investors to participate in the real estate sector without the need to buy entire properties. By investing in REITs, individuals gain exposure to a diversified portfolio of properties, including commercial, industrial, and residential assets.
Liquidity: Unlike physical real estate, which can be illiquid, REITs are traded on stock exchanges. This liquidity makes it easier for investors to buy and sell their holdings.
Defensive Nature: Healthcare REITs, for example, invest in hospitals and nursing homes. Given the basic necessity of healthcare, these REITs are considered more defensive and resilient investments.
Growing Demand: Singapore’s ageing but affluent population drives demand for healthcare facilities, making healthcare REITs even more relevant.
Changing Office Landscape: Commercial REITs (office REITs) own office buildings. While the office market faces challenges due to oversupply, the rise of co-working spaces and evolving office culture has renewed interest in this sector.
In summary, Singapore’s REIT market offers high yields, diversification, and liquidity, making it an attractive choice for investors seeking both income and exposure to real estate12. π’π
My Thoughts
- As Infographic below, SG is largest REIT & Property trusts markets.
- In recent times, several blogs, influencers, etc have been "popularising" SG REITs to the public.
- Like me, we stand to gain since we are invested in this space. So you will always need to assess your risk appetite and do portfolio allocations properly as all of us can be wrong.
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