SINGAPORE - Australia rates the highest for regulatory certainty in the Asia Pacific region, followed by Singapore, according a new research report.

It also stated that regulatory certainty is an important factor for investors to consider when deciding whether or not to invest in Reits in a particular jurisdiction.

The regulatory certainty and other favourable factors make the two markets the most preferred in the region for investors in real estate investment trusts (Reits), said the report, commissioned by Asia Pacific Real Estate Association (Aprea) and sponsored by Perpetual.

This is said to be the first comprehensive study of regulatory and tax regimes of Reits in the Asia Pacific region, highlighting the different ways Reits are regulated and taxed in the region.

It looks at factors including Reit structure, nature of operations, capital management, investor reporting, and regulatory and taxation issues.

The report noted that Reits provide what investors want, in terms of management and investment choices.

This is with the exception of the option of internal management and an appetite for more development activity than is currently permitted, apart from Australia.