The real estate benefits of ultra-loose monetary policy

The real estate benefits of ultra-loose monetary policy

Low interest rates since the financial crisis have helped to provide the property sector with scope for continued growth and income generation. Nick Greenwood, manager of the CF Miton Worldwide Growth investment trust, explores how four countries' property markets have fared recently.

China Chinese property has been described as ‘the most hated asset class on the planet', but while we are likely to find there have been excesses in the residential markets within secondary and tertiary cities, there are plenty of relatively stable corners of the market. These include Macanese apartments and prime commercial assets in cities such as Beijing and Shanghai. Dire sentiment surrounding the sector has enabled us to acquire specialist closed-ended funds at up to 50% discounts. While we do not expect much in the way of asset growth, we do expect discounts to narrow as it becom...