Global property equities

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REC global commentary

An apocalyptic August and first two weeks of September for equities markets saw property shares fall 11.4% globally from the mid-July peak, giving up all this year’s gains. Global total returns collapsed in August to -6.6%. Australia was the only leading market to show a positive return, 1.7%, outperforming local equities markets as investors rushed to buy REITs for their defensive income.

Canada and the US held up fairly well and lead on a 12-month basis, with 18.5% and 17.1% total returns. The UK nose dived to the bottom, with -11.3% by the end of August. Global capital-raising sank in August to £950m of equity and debt, the lowest monthly amount since January 2009. Most of the activity was in secondary issues in North America and £247m of new Asian bonds.

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