Real estate consultants Jones Lang LaSalle
sees big things in store for real estate in southeast Asia.
According
to the firm, there are several factors pointing towards booming real estate markets
in the area, including urbanisation and growing affluence - among other things.
For more on this, continue reading the following article from Property Wire.
The
real estate industry will have a key role to play in the ongoing development of
the Association of Southeast Asian Nations group of countries, according to
real estate consultants Jones Lang LaSalle.
Discussions
at the recent World Economic Forum on East Asia 2012 in Bangkok revealed that
the real estate industry will need to play a vital role in the growth and
development of the ASEAN nations.
‘This
is a great opportunity and responsibility for all those involved in the
industry, be they advisors, investors, developers or occupiers,’ said Chris
Fossik, managing director of Jones Lang LaSalle South East Asia.
It
focused on key areas where connectivity needs to be addressed in order to
secure the future economic, political and social success of the ASEAN
countries. Jones Lang LaSalle highlighted the ten key areas where smart real
estate planning and creation will impact on the success of the ASEAN group.
The
firm believes that increasing urbanisation will continue, particularly in the
less developed ASEAN nations, resulting in demand for housing, offices, retail
space and hotels and improvements in infrastructure means increased
connectivity between ASEAN countries and cities will lead to more real estate
development.
The
company also pointed out that the growing affluence of populations will lead to
increased demand for housing and increased tourism, both from within and
outside of the region, is expected to keep booming in coming years, which will
create a significant requirement for more hotels and resorts, particularly in
developing countries such as Myanmar and Laos.
On the
commercial front a focus on improving health and the increased spending on
healthcare will create a demand for more hospitals and clinics and developing
industry and trade will lead to increased demand for manufacturing and
logistics facilities.
There
will also be a requirement for more schools and colleges and investment will be
needed for the funding of real estate and infrastructure projects which will
present the opportunity to invest in markets with healthy returns in comparison
to other global markets. Jones Lang LaSalle believes this will also lead to the
development of established real estate capital markets.
Changes
will be needed included a liberalisation of land ownership laws to encourage
investment in order to fund developments across all sectors. There will also
need to be transparency and increased professionalism as the demand for
personnel in the real estate sector increases.
‘Major
differences between ASEAN markets such as foreign property ownership, alien
business laws and tax system need to be fine tuned. Once these areas are managed efficiently, the
gap in competitiveness among the real estate markets in ASEAN should become
narrower, and every market will then be able to capture most, if not all, of
the opportunities that will follow the connectivity and collaboration within
the sub region,’ said Suphin Mechuchep, managing director of Jones Lang LaSalle
Thailand.
‘For
example, 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. 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,’ he explained.
‘All
these are among the key factors that will allow for the faster development of
the real estate industry in these less developed economies. While this
cooperation will help boost intra regional investment opportunities, the
stronger real estate markets in the sub region should become more attractive to
investors from EMEA and the Americas,’ he added.
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