, it was a clear signal some investors believed property had peaked and were exiting the sector.
Investors are pulling their cash out based on their view that real estate assets have peaked because of rising interest rates, slowing global economies and structural factors including work from home and more on-line shopping.Others are reweighting their overall portfolios. The strong performance of property recently has left some funds overweight on property compared with other asset classes, so they’re selling down parts of their holdings to meet their target allocations.
Many others are sitting on the sidelines. They’ve taken their cash out of property and plan to wait until valuations on private REITs and directly held property are closer to where listed REITs are.More commercial property transactions and private REIT unit price revaluations are needed before a new market is established. Until then, it’s going to be tough for developers and fund managers to attract capital for new assets and funds.