This is among the reasons why the C-REIT market will “grow very fast” in the coming years, says Lim on the sidelines of the Asia Pacific Real Assets Association (Aprea) Singapore conference on March 25. “The problem with the Chinese market [now] is that demand is not there, because the market is not educated [about investing in REITs].”
Chinese and Hong Kong investors, who are accustomed to deep, liquid stock markets, may think REITs are too tepid.
“These are the two markets where people want to invest $1 and tomorrow, receive $2. They want to invest in IPOs and make 30% returns tomorrow,” adds Lim, chairman of JL Family Office and Aprea. “If they invest $1 and make five cents a year, they think it’s not interesting — that’s how REITs work, with 5% to 8% returns. This is the mentality in China, so we need to educate them [that] this is for retirees.”
Compared with Singapore and the US, which have nurtured their REITs to reach market capitalisations of US$82.1 billion ($105.64 billion) and US$1.34 trillion, respectively, the C-REIT market is relatively new, at just under five years old.
See also: CapitaLand-Mapletree merger ‘good move’ but ‘complex’ to appoint execs: ARA co-founder John Lim
The China Securities Regulatory Commission (CSRC) and the National Development and Reform Commission (NDRC) have launched the C-REIT regime in controlled phases, and the universe now includes assets in the infrastructure, industrial, rental housing, elderly care facilities, and consumption and commercial categories.
At launch, the average C-REIT is worth just “a couple billion renminbi” each, says Lim. As of February, there are 79 C-REITs with a total market value of US$31 billion, according to Aprea. This is already twice as many REITs as Singapore (39 + UI Boustead REIT) and Australia (40).
See also: Chinese hospitality is the ‘best asset class’ in real estate right now: John Lim
Although the C-REIT market is currently smaller than that in Singapore or the US by market cap, Lim believes “when the time comes, when liquidity comes back, all these REITs will go and acquire” assets. “The China market is so deep, it’s like the US.”
Agreeing, Aprea CEO Sigrid Zialcita says the C-REIT market could overtake that of the US — a point Lim made at a similar media briefing in October 2025, where he said the C-REIT market will soon “pick up” and surpass US$1 trillion in market cap.
Lim himself is in discussions to acquire a 6 million sq ft mixed-use development in Shanghai, though he stopped short of providing more details. “If they sell it to me cheap… I’ll REIT it in three years’ [time]. I’m retired already, I must do a big, big thing; what for [should I] do a small [listing] and waste time?”
Singapore has already made a mark on the C-REIT market. CapitaLand Commercial C-REIT (CLCR) debuted on the Shanghai Stock Exchange on Sept 29, 2025 as China’s first international-sponsored retail C-REIT, opening 19.6% higher than its IPO price. With a portfolio of two retail assets, CLCR had raised RMB2.29 billion — some $409 million — by issuing 400 million IPO units at RMB5.718 per unit.
See also: CapitaLand Commercial C-REIT debuts on Shanghai Stock Exchange
Room for C-REITs to grow
In November 2025, hotels and offices were added as eligible assets under the C-REIT regime, alongside the rollout of more flexible private and commercial-property REIT schemes. A pilot programme for commercial C-REITs was launched on Dec 31, 2025.
There is “no turning back” for the C-REIT market, says Lim. “They will continue to push for this. Asset values have dropped so much, and real estate is illiquid… For many years in China, there were hardly any big-quantum transactions; only domestic insurance companies were buying… So, they see the benefit of REITs being a channel to turn over the assets.”
The C-REIT regime is “very systematic”, says Lim. “Initially, when we talked to [regulators], they were afraid that Chinese businessmen would dump their worst assets and disappear with retail investors’ money. So, we advised [the Chinese authorities] that their vetting process must be very strict; that’s why it was initially very slow… now they slowly have gotten the feel of it.”
New C-REIT listings have raised US$5.5 billion so far this year, according to Aprea. Still, property-related REITs account for less than 0.5% of a US$5.9 trillion market as of mid2025, compared with around 10% in the US.
The gap underscores the C-REIT sector’s long-term growth potential, reads an Aprea report from February. “At the same time, declining interest rates are improving the relative appeal of REITs for yield-seeking investors, while giving real estate companies an additional tool to boost liquidity, reduce leverage and recycle capital.”
With Chinese government bond yields below 1.85%, property C-REIT yields of around 4% are “increasingly attractive”, said CapitaLand Investment’s (CLI) China CEO Puah Tze Shyang in February. “China’s C-REIT market is poised for expansive growth as more international sponsors and institutional capital are attracted to participate, further increasing liquidity and strengthening China’s position in Asia’s capital markets.”
The previous issue of City & Country featured Lim’s comments on why the rumoured CapitaLand-Mapletree merger is a “good move” and the importance of encouraging S-REITs to expand.
See also:
CapitaLand-Mapletree merger ‘good move’ but ‘complex’ to appoint execs: ARA co-founder John Lim
Chinese hospitality is the ‘best asset class’ in real estate right now: John Lim
CapitaLand Commercial C-REIT debuts on Shanghai Stock Exchange
Photos and charts: Aprea, CapitaLand
