Since the listing of CapitaMall Trust in July 2002, the number of REITs has really proliferated in Singapore. After a short span of a decade, there’s now almost 30 REITs listed on SGX and I am willing to bet that there’s more in the pipeline.
The huge amount of supply has been created largely to meet the desire and demand of the public “to invest in a professionally managed portfolio of real estate, through the purchase of a publicly-traded investment product.”*
But why are REITs so popular, especially with retail investors? Here’s some of the reasons I have thought of.
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Appeal of landlord business
“The investment objective of REITs is to provide unit holders with dividend income, usually from rental income, and capital gains from the profitable sale of real estate assets.”*
The idea of being a landlord appeals to most Singaporeans. Conventional wisdom dictates that one has ...
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