China’s REITs Lead Regional Recovery with Strong First-Half Gains: APREA
Chinese Real Estate Investment Trusts (C-REITs) have surged ahead of several regional counterparts, including Singapore, in the first half of 2025.
According to the Asia Pacific Real Estate Association (APREA), this year’s performance marks a “significant turnaround” for C-REITs—an asset class that hit record lows early last year amid China’s economic slowdown and a weakened property sector.
Between January and June 2025, the CSI REITs Total Return Index—which measures total returns from Chinese REITs—climbed 14.2%. This outperformed the 8.5% gain of the GPR/APREA Composite REIT Index, which tracks real estate securities across 12 Asia-Pacific markets.
This strong rebound contrasts sharply with 2024, when the CSI REIT index trailed the regional benchmark consistently.
When compared individually, C-REITs also outperformed REIT markets in Singapore (6%), Malaysia (10.8%), Japan (10.1%), India (10.1%), and Australia (10%).
C-REITs even outshone the broader Chinese equity market, where the SSE Composite Index recorded a more modest 2.8% rise during the same period.
APREA attributed this momentum to yield-focused investors and a rally in Chinese tech stocks, driven by growing interest in artificial intelligence. This in turn boosted investor confidence in digital infrastructure REITs.
Housing, highway, and data center C-REITs stood out in particular, noted APREA CEO Sigrid Zialcita. Affordable housing REITs saw gains thanks to supportive policy measures, while highway REITs, backed by steady toll-road revenues, attracted investors with their long-term income potential.
Zialcita added that the sector could see even more activity with the upcoming listings of data center REITs. Notably, GDS and Southern Runze Technology Data Center REITs were oversubscribed and priced at the top of their ranges earlier this year.
Launched just four years ago, China’s REIT market has expanded rapidly. From nine initial listings, there are now 68 C-REITs with a combined market cap exceeding US$20 billion.
Zialcita pointed out that REIT yields have risen amid China’s ongoing monetary easing cycle. Though yields have compressed slightly, she emphasized that the defensive nature of C-REITs continues to make them a valuable component in diversified portfolios—especially in a time of heightened market volatility.
Hong Kong Tops the Chart
Despite their recent gains, C-REITs still lagged behind Hong Kong (22%) and the Philippines (14.6%) in total returns during the first half of 2025.
Hong Kong’s REITs benefited from optimism around their potential inclusion in China’s Stock Connect program and a buoyant equity market. In the Philippines, rate cuts and new asset injections helped boost REIT performance.
However, C-REITs offered lower dividend yields compared to regional peers. As of June 2025, their average yield stood at 5.4%, trailing behind REITs listed in Hong Kong (6.7%), Singapore (6.3%), and Malaysia (5.8%), according to APREA data.
