REITs and ETFs in Singapore, Two Attractive Vehicles for Property Investments

Updated on Friday 22nd June 2018

Some of the most popular ways to enter the property investment market in Singapore  is by registering real estate investment trusts (REITs) and exchange traded funds (ETFs), which are investment vehicles usually employed for this sector.  Investors who want to open a hedge fund startup or one of the above mentioned types of funds should know that Singapore is one of the most competitive markets in the world, where commercial or residential properties are in high demand

Registering a REIT in Singapore 

Foreign investors who are interested in how to start a fund in Singapore operating in the real estate sector may choose a REIT, as it is used by businessmen with the purpose of purchasing shares of companies that hold porfolios related to real estate.

This type of vehicle is one of the most popular amongst the investors who want to invest in Singapore, due to the fact that this vehicle allows good exposure to the local property market, but it may also be employed for transactions related to foreign property markets.

One of the main characteristics of the REIT is that it can generate income deriving from dividends on a regular basis. More importantly, this investment fund allows the participation of an investor who provides a small capital and the investors may choose a specific subsector operating in the real estate market

Open an ETF in Singapore 

As mentioned earlier, another way to invest in the real estate market is by setting up an ETF, which is a type of open-ended investment vehicle. One of the characteristics of the ETF is that it has to be listed on the stock market

The fund is registered with the purpose of accomplishing a specific business goal and those who are interested in how to start an investment fund set up as an ETF will need to pool the fund’s capital alongside with other investors. 

It is important to know that Singapore eased the regulations related to investments carried out through ETFs, in the sense that financial advisors are now allowed to directly invest in ETFs in the name of their clients. Investors are invited to contact our team of partners in Singapore for in-depth advice concerning this regulation.