While Australia and Singapore continue to lead the stakes in global listed property trusts, the surprise star in a new survey is Vietnam, jumping from the sixth spot to third in predicted property market growth.

The findings came from the Asia Pacific REIT survey conducted by Latham Consulting and commissioned by local financial services provider Trust and law firm Allens Arthur Robinson. The study canvassed the views of senior property professionals, fund managers, merchant bankers, property owners, lawyers and accountants in 12 countries.

It found that over the next year or two, companies will increase the size of their existing REITs rather than launch new ones, but that this trend will be reversed in three to five years.

The theme of local LPT managers going overseas will continue.  “We expect many Australian REIT managers to continue to focus on unlisted REITS in the Australian market and to look off-shore for investment opportunities,” said Susan Burns, partner at Allens Arthur Robinson.

She suggested that flexible regulation is key to staying ahead. “The relative flexibility of Singaporean regulators continues to encourage listings on the Singapore Exchange…and its success is also encouraging a number of Asian countries, including India and China, to explore creating their own domestic REIT regulations and markets.”

Meanwhile, Vietnam is the country to watch after it kicked Japan off the third spot. Early this month, a 75-member business delegation from Vietnam came to Sydney to attend an investment forum hosted by Austrade.

Source: Financial Standard