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Property funds soar

Property funds in this country offer the highest returns in Asia at an average of 7.3 per cent a year and dividends of 5-9 per cent, says KGI Securities.

Published on October 30, 2007

In the current low-interest environment, property funds are an alternative for investors, with healthy returns of as much as 7.3 per cent a year, compared with 4.51 per cent for 10-year treasury bills, the securities company said in a statement.

There are 105 property funds in Asia, with total capital of US$82.3 billion (Bt2.81 trillion) and an overall return average of 5.5 per cent a year. The average government treasury return in the region is 3.6 per cent. Despite their small size, Thailand property funds offer the highest return. There are 14, with total market capitalisation of $1.31 billion. The average return is 7.3 per cent.

However, KGI said the key obstacle for funds here was the 30-per-cent capital-reserve requirement, which cut returns 1.3-1.5 per cent. - The Nation

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Property funds soar

Property funds in this country offer the highest returns in Asia at an average of 7.3 per cent a year and dividends of 5-9 per cent, says KGI Securities.

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