15 Jun 2012
GROWTH STORY: The Asean (Association of Southeast Asian Nations) real estate industry is poised for stronger growth in tandem with the strong economic growth in the sub-region, concludes the World Economic Forum on East Asia 2012 recently.
“Major differences between Asean markets such as foreign property ownership, alien business laws and tax system need to be fine-tuned and managed efficiently in order for the markets to be competitive and capture all the opportunities that follow the connectivity and collaboration within the sub-region,” said Suphin Mechuchep, Managing Director of Jones Lang LaSalle Thailand.
He added that stronger real estate markets in Asean would be more attractive to investors from EMEA and the Americas.
Investors from more developed economies in Asean should be more confident to expand to property markets in newly opened economies like Myanmar, Laos and Cambodia where new business opportunities are abundant, said Suphin. “At the same time, the less matured real estate markets in these countries will benefit from a better inflow of capitals as well as the transfer of tested business process, expertise, know-how and technology. All these are among the key factors that will allow for the faster development of the real estate industry in these less developed economies. ”
Held in Bangkok, the forum attracted business leaders, academics and industry professionals who discussed the future of the region as it becomes more connected.
Based on the discussions, real estate consultant Jones Lang LaSalle came out with 10 highlights of the region that will impact on its success as a grouping:
1. Increasing urbanisation: will continue, particularly in the less developed ASEAN nations, resulting in demand for housing, offices, retail space and hotels
2. Improvements in infrastructure: increased connectivity between Asean countries and cities will lead to more real estate development
3. Growing affluence: of populations will lead to increased demand for housing.
4. Increasing tourism: tourism, both from within and outside of the region, is expected to keep booming in the coming years, which will create a significant requirement for more hotels and resorts, particularly in developing countries such as Myanmar and Laos.
5. Healthcare: the focus on improving health and the increased spending on healthcare will create a demand for more hospitals and clinics.
6. Developing industry and trade: will lead to increased demand for manufacturing and logistics facilities.
7. Focus on education: will create the requirement for more schools and colleges
8. Investment: will be required for the funding of real estate and infrastructure projects, this will present the opportunity to invest in markets with healthy returns, in comparison with other global markets; this will also lead to the development of established real estate capital markets.
9. Land ownership laws: will need to be liberalised to encourage investment in order to fund developments across all sectors.
10. Real estate professionals: as real estate development and related activity increases, the region will experience an increased demand for real estate professionals.
The 10-member Asean forms an important strategic and economic region with a combined population of over 600 million. Its growth rate is expected to exceed 5 per cent in 2012 despite ongoing economic turmoil in the Eurozone and the US. The Asean Economic Community Blueprint has established concrete targets to form a single market and production base by 2015.
Read more: Asean’s real estate to chart stronger growth - RED - New Straits Times http://www.nst.com.my/red/asean-s-real-estate-to-chart-stronger-growth-1.94590#ixzz1xp6pSHzA