Friday, June 15, 2012

Ask The Experts: Consider Property Stocks Amid Market Uncertainties

Ask The Experts: Consider Property Stocks Amid Market Uncertainties

Patrick Summer, Head of Property Equities at Henderson Global Investors, shares why property stock is an attractive option when market conditions remain uncertain.

Patrick explains that properties in general have both the characteristics of bonds and equities. On one hand, the property stocks issuers are, broadly speaking, the same talents who issue corporate bonds, and the leases tend to have a longer obligation of 5-15 years. On the other hand, in the long run, the growth in property values and rents should be in line with the broader economy, and this is a characteristic of equities.

Also, the property sector has been through the financial crisis and refinanced, hence they don't see much stress in financial leverage in the market.

While many countries in Asia are rolling out property cooling measures, Patrick thinks, in the case of Singapore, the government has put some efforts to control residential prices, which don't seem to be having any effect, as demand remains strong or even rising, thanks to the employment growth in Singapore. On the other hand, the prices in the residential market in Hong Kong had eased a bit, but rebounded again in February and March 2012. There is an undersupply of houses that keeps demand up, but the fiscal measures takes away some of the speculative demands at the high end market.

Country-wise, Patrick is more optimistic about the US as the market sees growth in the US economy. Specifically, he sees some income growth in the REITs, and believes the REITs issued by good quality property talents have capital advantage. Even though the housing market in the US is depressed, but when people are not buying houses, they are renting, which is good for the apartment REITs.

1. What's the outlook for the global property sector for the rest of the year?
2. Given a 3-5 years horizon what are the main growth drivers for the property sector?
3. Compared to investing in traditional equity markets, why is the global property sector an attractive option?
4. Many countries in Asia are rolling out property cooling measures. What are the implications to property stocks investments?
5. Given your views on the market, how do you position to benefit the investors?

Broadcast Date : 13 June 2012
Video Duration : 00:12:25
Programme : Ask The Experts: Consider Property Stocks Amid Market Uncertainties

Publish date: 13/06/12

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

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