In my last article for The Property Chronicle, I gave an overview on:
- The definition REITs (Real Estate Investment Trust)
- The reasons to invest in REITs as an alternative to physical real estate investment
- The Benefit and drawback on investing in REITs
In this article I will discuss Singapore REITs Index.
Investors should understand the overall market sentiment before making an investment decision. One of the basic rules is to avoid investing during market downturns as the stock price can go lower even though it looks cheap and undervalued.
On top of individual REITs counters, retail investors also need to be aware of the Overall Market Sentiment by looking at the Singapore REITs Index. This index is akin to the Straits Time Index (STI) which has 30 component stocks representing the Singapore stock market. There are currently two Singapore REITs indices to represent the Singapore REIT Market, namely the FTSE ST REAL ESTATE INVESTMENT TRUST (FSTAS8670) and SGX S-REIT Index.
FTSE ST REAL ESTATE INVESTMENT TRUST (FSTAS8670) is the most commonly used index as it has the longest history. This FTSE ST REITs Index consists of 31 REITs and Real Estate Business Trusts in Singapore (see Table 1 below).