Real estate investment trusts (REITs) have proved popular in Singapore and Hong Kong in recent years. But with rising interest, investors want to see the development of REITs across Asia to create more investment choice.

Investors are attracted to Asian REITS because they have proved a reliable and steady source of income, yielding a higher return than stocks.

Within barely two years, the Singapore REIT market has grown to over S$4B in market capitalisation. Now Malaysia, Taiwan, and Thailand are set to get in on the act by cutting red tape and creating tax incentives to encourage REIT listings.

Sunway City Bhd (Sun City), senior managing director at Datuk C.K. Wong said: Being relatively young in the property cycle compared with other mature markets like the US and Australia, Asia offers great potential for growth. As a result REITs should really take off in a big way as properties have greater capital appreciation and rental yield potential."