The Inflation-Hedging Characteristics of Vietnamese Securitized Real Estates

Abstract

This study investigates the inflation-hedging characteristics of real estate stocks in Vietnam. Empirical findings show that securitized real estates can provide a partial hedge against both ex post and ex ante inflation, but no statistical relation between securitized real estates returns and surprises in inflation is found. Noticeably, the Fisher hypothesis on the one-to-one relationship between real estate stock returns and expected inflation is strongly rejected. This study has implication for investors by adding to the understandings of the inflation-hedging characteristics of Vietnamese securitized real estates.