Robinhood reports August 2025 customer and trading metrics
Investing.com -- Global real estate has gained 10.4% so far in 2025, underperforming the wider equity market by 4.6%, with performance sharply split across regions, according to UBS.
Asia has led the way, boosted by strong gains in Japan and Australia, while Europe and Hong Kong lagged amid office sector weakness and funding pressures.
The sector added 2.1% in August, UBS said, just ahead of global equities, supported by expectations of rate cuts and improving earnings momentum.
In the U.S., high beta segments like regional malls and lodging posted double-digit gains, reflecting optimism around potential Federal Reserve rate cuts. Brokers such as JLL, Cushman and CBRE have also rallied, supported by strong earnings and a pickup in transactional activity.
At the same time, crowding data show that data centers and infrastructure remain the most long-crowded REIT subsectors, while offices remain heavily shorted. UBS added that U.S. REITs “currently screen as fairly valued relative to historical trends,” with its valuation model pointing to slightly higher multiples by year-end.
Asia is currently the standout. Japan has surged on overseas capital inflows, with UBS noting that major funds are targeting residential opportunities amid rising rents.
“Overseas investors divesting to domestic buyers is a notable trend,” a team of analysts led by Charles Boissier said in a note.
At the same time, local policymakers are weighing housing cooling measures in central Tokyo to curb speculative condo buying by foreign investors, a potential shift that UBS said could ripple more broadly.
Singapore’s REITs benefited from the Japanese sponsor model that allows discounted asset sales, giving them a potential growth edge.
Meanwhile, in China, the rise of private REITs is described as “a game changer for property (incl. data centre) companies’ business models and valuations,” opening new channels for capital recycling.
Elsewhere, Australia’s market was upgraded from underweight to overweight, with UBS highlighting that the “set-up for AU Real Estate is the most positive it’s been since COVID,” citing falling rates, rental growth, and signs that valuations may have troughed.
Analysts said that August’s strong share price rally was “overwhelmingly driven by multiple expansion” rather than big earnings upgrades, though management commentary turned more positive and outlooks for rental growth improved.
By contrast, European REITs slipped in August as the ECB approaches the end of its easing cycle. London offices underperformed, underlining persistent weakness in that sub-sector.
The analysts pointed to a deepening “bifurcation between prime and secondary assets,” with rising vacancies especially in secondary markets such as Stockholm offices.
Hong Kong remains under pressure from higher funding costs, with HIBOR expected to stabilize only later in the year. July retail sales fell sharply, though luxury segments held up better. UBS favors developers over landlords there, expecting residential markets to be near a bottom.
Valuations globally remain at a discount, with listed real estate trading at roughly 10% below net asset value (NAV), in line with historical levels.
Transaction volumes are still recovering, but the earnings outlook has improved, with expected EPS growth of about 7.3% for 2024–25, UBS said.
Overall, the main themes in global property now revolve around rate-cut expectations, Asia’s outperformance driven by structural changes and capital inflows, contrasting struggles in Europe and Hong Kong, and the growing role of private REITs in reshaping business models in China.