Real estate stocks registered a widely varying performance across regions and countries in the first half of 2009 according to a report published by the European Public Real Estate Association (EPRA).
According to the report, listed real estate company performance at the global level as measured by the FTSE EPRA/NAREIT Global Index, registered a return of 4.9% in the first half of 2009 outperforming global bonds but underperforming global equities that achieved a return of 9.1%.
Among the different regions, Asia was by far the best performer, as public real estate returns climbed to 23.6%. European public real estate performed poorly over the first half of 2009 with a return of just 1.2%. North American listed real estate conpanies registered by far the worst performance with a return of -10.9%. However, these regional averages should be viewed with caution as public real estate performance varied considerably across countries within each region.
Figure 1. Regional Real Estate Stock Performance, First Half 2009
Source: EPRA
In North America for example, the very poor performance of the aggregate index was due to the negative performance of US listed real estate companies, which registered a return of -12.5%. However, Canadian public real estate companies performed very well registering a return of 14.8%.
Figure 2. Real Estate Stock Performance in North America, First Half 2009
Source: EPRA
In Europe returns ranged from -16.3% in UK to 57.4% in Austria (see Figure 3). Real estate stock performance was also negative in Sweden and Belgium, with returns dropping to -11.9 and -2.7%, respectively. The second best performer, was Finland with a 12.3% return, followed by Italy with a 10.2% return.
Figure 3. Publlic Real Estate Performance in Europe, First Half 2009
Source: EPRA
Finally, in Asia there was also huge variation in real estate stock performance (see Figure 4). Hong Kong was by far the top performer with listed real estate companies registering an average return of 63.1%, followed by Singapore where public real estate companies registered a 38.5% return. The worst performer was Australia, where listed real estate companies registered an average return of -15.5%. New Zealand public real estate registered also a negative return of -7%.
Figure 4. Real Estate Stock Performance in Asia, First Half 2009
Source: EPRA
Search Our Over 200-Page Website!
Related Posts
Canada Economic Forecast July 2009
US Economic Forecast July 2009
Brazil Economic Forecast July 2009
Global Economic Forecast July 2009
Trends in Beijing Property Market in 2009
Global Market Trends in July 2009
Top Investment Markets 2009
Return from Real Estate Stocks First Half 2009 to Market Watch
