Market Trends of APAC REIT Industry
Growth in Disposable Income is Driving the Market
The economies of many countries in the Asia-Pacific area, including China, India, Japan, South Korea, and numerous Southeast Asian countries, have been growing rapidly. Higher levels of disposable income for people and households are a result of this expansion. A sizable middle class has grown in the Asia-Pacific region. As more people escape poverty, their disposable income rises, boosting consumer spending and stimulating the economy.
The REIT business is also benefiting from this rise in disposable income. People have an inclination to make investments. People are expressing interest in investing in the REIT market because it is expanding favorably year over year.
Japan is Dominating the Asia-Pacific REIT Industry
Japan has the largest REIT market in Asia-Pacific, with 61 J-REITs listed on the S&P ASX 300 REITs index. The Japanese real estate investment trust market was established in 2001 and is one of the largest in the world. Japanese trusts are small, but their total market capitalization ensures that J-REITs have the largest weighting in Asian REITs indices. Nippon Building Fund Inc. was the real estate investment trust with the largest market cap in Japan. Although Australia has the most established and the second-largest market in the region, the number of A-REITs is shrinking because of ongoing mergers and acquisitions. Singapore ranks as the third-largest REIT market in Asia-Pacific.
