Chinese real estate investment trusts (C-Reits) have shown strong performance in the first half of 2025, outpacing several regional counterparts, including those in Singapore.
According to the Asia Pacific Real Estate Association (Aprea), this surge marks a “significant turnaround” for C-Reits, which had reached historic lows early last year due to a slowdown in China’s economy and property market.
Between January and June 2025, the CSI Reits Total Return Index—which measures the performance of C-Reits—rose by 14.2%, outperforming the GPR/Aprea Composite Reit Index’s 8.5% return. The latter tracks real estate securities across 12 Asia-Pacific markets.
This rebound contrasts with 2024, when the CSI Reits index consistently trailed behind its regional benchmark. In country comparisons, C-Reits also led gains over Singapore (6%), Malaysia (10.8%), Japan (10.1%), India (10.1%), and Australia (10%).
C-Reits even outperformed the broader Chinese stock market, with the SSE Composite Index rising only 2.8% during the same period. Aprea attributes this growth to increased demand from yield-focused investors and renewed interest in digital infrastructure, spurred by the AI-driven tech rally in China.
Sigrid Zialcita, Aprea’s CEO, highlighted the strong performance of housing, toll road, and data center C-Reits. Government support helped boost affordable housing Reits, while highway Reits attracted investors with their stable, long-term returns. Upcoming data center Reit listings are expected to inject further dynamism into the market—recent launches by GDS and Southern Runze Technology were oversubscribed and priced at the top of their ranges.
Though relatively new—China’s first nine C-Reits launched just four years ago—the sector has grown to 68 listed entities with a combined market cap exceeding US$20 billion.
Zialcita noted that the easing of monetary policy in China has supported Reit yields. Despite recent compression, C-Reits’ defensive appeal continues to attract investors seeking portfolio stability amid rising uncertainty.
However, while C-Reits led most regional markets, they still trailed Hong Kong (22% return) and the Philippines (14.6%) in total gains. Hong Kong Reits benefited from potential inclusion in China’s stock connect program and strong market sentiment, while Philippine Reits were buoyed by rate cuts and new asset contributions.
In terms of dividend yields, C-Reits stood at 5.4% as of June 2025, lower than yields offered by Reits in Singapore (6.3%), Hong Kong (6.7%), and Malaysia (5.8%).
