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Property Investment Essay

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Our group study on risk and return of property stocks and real estate investment trusts REITs studied of different countries. We refer the journal papers in which the researchers studied about the risks and returns of property stocks and real estate investment trusts (REITs) from different countries, mainly focus on Malaysia and some other Asia, cover the period from 1997 to 2013. Property investment which is purchasing stock of property stocks and real estate investment trusts (REITs). These investments are widely invested by many investors. The literatures devoted to examine the risk and return performance of property stocks and REITs relative to the stock market are extensive. The studies regarding to the performance of risk and REITs …show more content…

A huge number of researches have been carried out to further study the investment nature of real estate and property market. For example, Miles and Mccue (1984), Miles, Cole and Guilkey (1990), Lizieri and Satchell (1997), Liow (1997), Tse (2001), Hui, Ooi and Wong (2007), Ryan (2011), Lin and Lin (2011), Liow (2012) conducted research on real estate investment trust (REIT), securitized real estate properties and direct real estate investment return with respect to other investment option like stock …show more content…

The result stated that REITs exhibit a low correlation to shares (r = 0.28) and property companies (r = 0.18) for the study period from January 2002 to December 2010. This implied that REIT could certainly offer diversification benefit to equity investors in the stock market. Besides, REIT also offers greater portfolio diversification benefit as compared to property companies. There is a higher correlation between shares and property companies (r = 0.51). The result consistent with Lee and Ting (2009), REIT offer portfolio diversification potential than property shares in a mixed asset

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