AUSTRALIA, followed by Singapore, are the most favoured markets for investors in real estate investment trusts (Reits), according to a new report commissioned by the Asia Pacific Real Estate Association (Aprea) and sponsored by financial services group Perpetual Corporate Trust.

In the first comprehensive study of regulatory and tax regimes of Reits in the Asia-Pacific, about 95 per cent of those surveyed say regulatory certainty is an important factor when deciding whether to invest in Reits in a particular jurisdiction.

About 84 per cent say regulation of related party transactions is "very important" to Reit market confidence and integrity.