Unlisted real estate funds in the Asia-Pacific region, and Australia in particular, performed strongly against their US and European peers towards the end of 2016.
According to the Global Real Estate Fund Index, Asia-Pacific returned 2.94% in the third quarter of 2016, outperforming the US (1.98%) and Europe (1.01%) by a significant margin.
Australia was a key driver of performance, with local funds returning 2.94% compared to China's 0.11% and Japan's 1.16%.
The ANREV Asia Pacific All Funds Index showed that the region turned around after two consecutive quarters of decline, returning 2.58% - mostly because of the increasing returns of value-added and opportunity funds, which rose to 2.38% and 1.08% respectively.
"Asia Pacific was the only region to see an improvement in its Q3 performance out of all the regions measured due to the strong performance of all styles of funds," ANREV director of research and professional standards Amélie Delaunay said.
"Europe's decline in performance could be attributed to the weak performance of UK funds and the US also saw a slow down."