GPR/APREA Index Report - December 2021

The wider GPR/APREA Listed Real Estate final dash in December brought total returns back into positive territory for the full year, largely on the performance of markets in Australia and Japan.

Australia’s property stocks have had an outstanding year in 2021 on strong earnings expectations. With inflation expected to remain manageable, the country’s central bank is under no significant pressure to tighten policy rates from the currently historic lows.

Gains were also registered across the rest of the region’s heavyweights, with the exception of Chinese stocks, which continued to remain pressured.

A series of asset sales underscored concern that equity investors will bear the brunt of losses as developers offload projects to repay debt.

However, signs are mounting that China will ease curbs on its property sector. To stem off downward pressure on the economy, the central bank trimmed banks’ reserve requirement ratio in December.