REITs are classed as diversified but are principally involved in condominium development for sale. In Australia’s REIT investment into retail is 34 %, largely because of the influence of the Westfield Group, one of the largest REITs in the world.
3.5 Asian REIT Growth Prospects
The future for REITs in Asia is extremely bright. The case is compelling from both the supply and demand side given that a large percentage of global real estate assets are in Asia. A vast amount of these assets are held in private hands, or within companies that do not specialize in property, and are thus inefficient from a management and tax perspective. It is worth pointing out; however, the Asian listed real estate sector remains very fragmented and is poorly represented as far as global investors are concerned. As all forms of investment are now increasingly based on global strategies, the need to compete on equal terms is vital. Asian real estate requires considerably more structured organizational capacity to properly compete in the area of transparency, research and capital rising.
Total number of listed REITs and IPOs before 2001-2008:
Total no. of REITs IPO in Asia countries from 1990- 2007