Investors are seeking yield over growth with their Asian property securities investments, claimed a sub fund of First State Investment ICVC.
Real Estate Investment Trusts (REITs) are continuing to benefit from austerity measures, according to First State Global Property Securities Fund.
Fund managers Andrew Nicholas and Stuart Martin indicate that an environment such as this, where investors are favouring defensive sectors, always tends to outperform, hence their confidence in Asia's prospects.
China funds may begin to look particularly attractive over the short term, the pair suggest.
Mr Nicholas explained: "China is in the process of tightening conditions in the residential property market and whilst this is impacting negatively on demand, it is unlikely to lead to a sustained underperformance of the sector relative to the wider economy."
These comments are likely to make interesting reading following claims by StarRock Investment Management this week that China's property market is in a "very big bubble", which is in need of interest rate increases to bring property prices down.
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